5 propylene shipments from US fixed for arrival in Europe

24-May-15

Five US propylene shipments totalling 20,000-25,000 mt have been heard fixed for Europe, for arrival end-May to early-July, as per sources in Platts. Europe has been witnessing tightened supply amid production issues. This has lifted prices in Europe opening an arbitrage opportunity between the two continents. Up to 12% of European olefin production is reported to be shut in. Arrival of these imports is not expected to make a substantial difference on prices, as sources opine that the imports will only help re-establish inventories, as May has lost more than 25,000 mt of production. Propylene spot prices in Europe were assessed at US$1151.66/mt FD NWE on Thursday; while prices in the US were assessed at US$628.14/mt FD USG on Wednesday. Trade and shipping sources pegged freight at US$210-220/mt.