Formosa Petrochemical Corporation (FPCC) has commissioned a 600,000 tpa propylene facility in Mailiao, Taiwan in May 2007. The new cracker has improved supplies to markets in Asia and Europe, causing decline in spot prices not only in Asia but also in Europe.
Production issues at Total's 800,000 tpa polypropylene (PP) facility in Feluy, Belgium, and resumption ahead of schedule of Basell's cracker in Wesseling, Germany have affected demand and extended the propylene market slightly. However, most market players agree that the latest decline in prices in Europe will not greatly affect contract discussions for Q3 2007.
Asia-Europe shipments are expected to continue for sometimes with FPCC's propylene surplus of 15,000 tons/month being exported from its Asian cracker until the company's new 450,000 tpa PP facility is brought online in China in Q4-07 to soak up the propylene surplus.
13-Jul-07 
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