Taiwan’s May propylene contract price up $19/t

28 June 2007 08:22 [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s domestic May contract price for propylene was settled at $1,083/tonne DEL (delivered), up $19/tonne from April prices, a source close to a Taiwanese producer said on Thursday.

Taiwan contract prices had jumped by $53/tonne in the last four months, largely due to high settlements in US and European contract prices, the producer said.

US contract prices for polymer grade propylene rose by 4 cents/lb to $53.50 cents/lb DEL (delivered) in May and second-quarter prices in Europe rose by €30/tonne ($40.39/tonne) to €850/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

These rises had supported the higher numbers in Taiwan domestic contract prices, despite a fall in Asian spot and Korean prices due to large propylene supply from Taiwan, he added.

Northeast Asian propylene prices have fallen by $90-110/tonne since Formosa Petrochemical Corp (FPCC) started up Asia’s largest cracker on 25 May, which has an ethylene capacity of 1.2m tonnes/year and propylene capacity of 600,000 tonnes/year.

April contract prices were reported at $1,064/tonne DEL, up $34/tonne from March prices, buyers in Taiwan said.

Taiwan’s monthly contract price for propylene, which takes into account components of US, European, Asian spot and Korean prices, is settled via a pricing formula between the country’s two producers, Formosa and CPC Corp, and various domestic buyers. This contract price is also known to be used in various contract settlements in southeast Asia.

By: Gina Myung
+65 6780 4359

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