Taiwan’s Aug C3 contract price spikes 4.8%

12 September 2007 03:48  [Source: ICIS news]

SINGAPORE (ICIS news)--Taiwan’s August domestic contract price for propylene was settled 4.8% higher compared with July, due to the increase in US August contract price and higher Europe third quarter contract prices, a Taiwanese producer said late on Tuesday.

The price was settled $49/tonne higher at $1,073/tonne DEL (delivered).

US contract prices in August for polymer grade propylene rose 1.75 cents/lb to 53.75 cents/lb DEL from July.

Third-quarter prices in Europe rose by €28/tonne to €878/tonne FD (free delivered) NWE (northwest Europe), according to global chemical market intelligence service ICIS pricing.

Similarly in Asia, propylene prices maintained a high of $1,050-1,140/tonne CFR (cost & freight) NE (northeast) Asia in mid-August, following continued Chinese demand and also higher affordability due to good margins observed in downstream polymer markets.

Taiwan’s monthly contract price for propylene, which takes into account components of US, Europe, Asia and South Korea spot prices, is settled via a pricing formula between the country’s two producers, Formosa and CPC Corp, and various domestic buyers.

The 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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