A further drop was witnessed in propylene prices, as they shrunk by almost hundred dollars. Subdued demand has lowered seller's offers to US$1200/MT CFR Asia in the face of buyer's interest at least hundred dollars lower. CPC has shut its 650,000 tpa propylene plant and Formosa has shut its 1200,000 tpa propylene plant for annual turnarounds.
Polypropylene prices have receded to US$1500/MT CFR China - falling to 6 month lows on lackluster buying in the continent. PP producers in Taiwan have brought down production rates by 30%. Buyers continue to abstain from concluding deals in anticipation of a further price drop in line with deteriorating propylene values that have fallen by over US$350 in the fortnight. Few deals for CFR China cargoes from Saudi Arabia were heard concluded at low 1400 level, and from Iran in low 1300s.