The gap between propylene and import homo PP widens in SEA, China

According to weekly average prices on ChemOrbis Price Wizard, the gap between spot propylene prices on FOB Korea basis and import homo PP prices both in Southeast Asia and China has been widening since late February.

Spot propylene prices in Asia have been following a downward trend due to weak demand despite several maintenance shutdowns in the region, which contributes the retreating prices both in China’s and Southeast Asia’s import homo PP markets along with the factors including slower than expected demand as well as lower offers from both regional and overseas producers.

In Southeast Asia, the gap between import homo PP prices and spot propylene prices on FOB Korea basis is currently standing at $312/ton, the highest level recorded since late November 2016. Weekly average prices on CFR SEA basis import homo PP also is currently standing at their lowest levels since early February.



Source: ChemOrbis Price Wizard

Data also shows that in China, import homo PP prices are currently standing at their lowest levels recorded since mid- December 2016 while the gap between spot propylene and China’s import homo PP prices is currently standing at $224/ton, the largest gap since late December 2016.



Source: ChemOrbis Price Wizard

A Vietnamese converter commented, “Delta between propylene and PP remains wide in Asia; therefore we think PP prices still have room for further decreases in the days ahead to be reported at around $980-1000/ton CIF basis. This is also why we keep our purchases on hold for now.”