A persistent uptrend in spot propylene prices in Asia, that pushed prices up by almost 100 dollars since end of October, has been arrested. From levels of US$960/MT FOB Korea in H1-October, H2-December propylene prices had spiked past US$1100/MT. Lackluster sentiments in downstream polypropylene markets has caused FOB Korea prices to move south, dipping by about 10-15 dollars below US$1100/MT.
Despite supply constraints and healthy demand from downstream propylene oxide, acrylonitrile and acrylic acid markets that pushed up propylene values, PP was unable to keep pace. As Asian sellers hiked offers by about 100 dollars for December shipment, the region witnessed an influx of import cargoes. As propylene supplies begin to ease and naphtha prices get affected by concerns over the pace of global recovery amid yo yoing oil markets, propylene prices have slipped.