Propylene prices continue to decline

12-Jun-07

Taiwan's Formosa Plastics Corporation (FPC) has boosted operating rate to 80%, and is reported to currently not have any plans for exports. The No.2 naphtha-cracking unit of S. Korea's Yeochon Naphtha Cracking Centre (YNCC) will be restarted on Jun 21st after a month long turnaround. Buyers estimated that July propylene cargoes would increase. As supply from FE producers increase, proplyene prices continued to decline in an attempt by some traders to liquidate their cargoes at low prices. Interestingly, the market saw very few deals even at these low prices as buyers expect a further price drop. Bids from end-users in FE region has slipped to below US$1,000/mt FOB Korea level for July shipment.