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.
To track movements in global propylene prices, please see Propylene Analysis (For members only)
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.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Will costs drum up support for a 3rd-month-firming in Europe PET market?
- Import PE markets give softening signals in China, SE Asia
- PVC supplies tight, demand robust across Europe
- China’s local PP, PE markets snap nine-week rally
- Turnarounds keep PP supply tight in SE Asia
- European PP market sees step backs from initial July offers
- Focus turns to August in Turkey: PP and PE players sidelined amid blurry outlook
- SEA PE uptrend intact, yet increases capped by reduced demand
- Taiwanese major hikes Aug PVC offers to Asia as limited availability outweighs monsoon effect
- East African PP, PE markets on rise for July but deals still scarce