Spot propylene prices to tighten in Asian market in March?

17-Jan-05

South Korea's Hyosung Corp. has scheduled a 30 day turnaround at its dehydrogenation unit with a capacity of 180,000 mta of propylene. The maintenance turnaround will begin on March 10 at the plant located in Ulsan. However, the company plans only a 3-4 day shutdown at its downstream 280,000 mta polypropylene plant. Propylene demand for Hyosung's PP plant is currently partly met by domestic sources. The increased demand due to reduced upstream supply during the maintenance shut, will put a load on domestic producers. They in turn will have to cutback on the amount of propylene exports available from South Korea in March and early April. As South Korean producers are one of the main suppliers of spot propylene to the Asian market, spot supply is expected to tighten considerably and put upward pressure on prices during the turnaround. Thai Titan also plans maintenance shutdowns at its crackers. Maintenance is scheduled at the No.1 280,000 tpa unit for one month in March or April. No maintenance is planned at the No.2 440,000 tpa plant this year.