Spot propylene hits multi-year highs in Asia, Europe; retains firming in US
In Asia, the weekly average of spot propylene prices has posted a cumulative increase of $85/ton since the firming trend started in early April. The European market started to gain ground earlier than Asia in around mid-March, with spot prices posting a total increase of €155-160/ton since then. Meanwhile, in the US, the weekly average of spot propylene prices have recorded a significant gain of around $205/ton since the market turned bullish in the first half of April.
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The ongoing bullish trend across global propylene markets is mostly attributed to healthy demand and tight supplies amidst a series of maintenance shutdowns mostly scheduled in the May-July period.
Higher spot naphtha prices have also contributed to the firming trend of propylene amidst strong crude oil futures. However, propylene might lose the support from the upstream side given the recent declines in oil prices, some traders opined. Spot naphtha prices in Asia and Europe have slightly turned downward after reaching their highest levels since October 2014.
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