BP Refinery Blast: Asian propylene prices edge lower

24 March 2005 08:18  [Source: ICIS news]

SINGAPORE (CNI)--Asian propylene prices were slightly weaker late on Thursday despite rumours of a possible fluid catalytic cracker (FCC) shutdown at BP’s Texas City refinery in the US, traders told CNI.

 

The isomerisation unit at the 470,000 bbl/day refinery was hit by an explosion on Wednesday, leading to the bullish rumour. The FCC is said to be located next to the isomerisation unit. However, a BP spokesman declined to comment on the rumour.

 

Prices of April spot propylene were at $995-1,000/tonne CFR Northeast Asia, with offers seen at $1,100/tonne CFR Northeast Asia. On Wednesday, April propylene prices were at $1,030-1,050/tonne CFR Northeast Asia.

 

The price drop were attributed to a lack of buying interest amid the current high prices. Some downstream producers prefer to cut their operating rates than to pay for high-priced propylene feedstock. The price slide may be limited because of the current tight supply situation.

 

A South Korean propylene producer said that most players had not reacted to the news, adopting a wait-and-see approach. “However, it is possible that prices will increase if deep-sea material arriving from the US is affected as the Asian market is very short of spot material now,” he added.

 

However, a Taiwanese producer said that the impact on propylene prices would be minimal as the arbitrage window was barely open because of the high freight rates. 

By: Quintella Koh
+65 6780 4359

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