Abundant supply in the Asian region has led to soft demand for propylene in Asia.
Buyers continued to wait and watch for certain direction in price as sellers maintained their intentions at US$1000mt CFR Asia. Despite downstream PP offers for July shipment being raised by almost twenty dollars, buyers were still on the sideline. Taiwan's Formosa Plastics continued to maintain operating rate of its no.3 naphtha cracker at Mai Liao at 80-85%.
S. Korea's Yeochon Naphtha Cracking Centre (YNCC), that has restarted its 520,000 tpa No.2 cracking unit, continues with a bare 30% operating rate owing to technical issues. July will usher coming back on stream of several ethylene, creating a glut in supply. This has led to weak demand for spot ethylene cargoes in the market of Asia. Buyers' returned bids were no higher than US$1000/mt CFR Northeast Asia/Southeast Asia. Japanese sellers lowered their offers for ethylene to USD1100/mt CFR Northeast Asia and USD1150/mt CFR Southeast Asia.