Asian polypropylene rises in line with increased propylene values

19-Nov-08

This week, propylene prices strengthened by almost US$150/MT in Asia, as demand in China improved. FOB Korea December shipment propylene was up to levels of US$425/MT. Polypropylene prices also rose in line with increasing input costs and improving demand. After successful conclusion of CFR China deals at US$725/MT, sellers hiked offers for yarn/injection grade by about 50-60 dollars. Infact, CFR China offers for next month shipment were pegged at highs of US$825/MT. Reliance Industries Ltd. has restarted one of its polypropylene lines at Jamnagar with a capacity to produce 250,000 tons, shuttered since the end of last month, and Formosa has also hiked operating rates to 80%.