China PO plummets $190/t on increased supply

04 July 2008 10:05  [Source: ICIS news]

SINGAPORE (ICIS news)--Chinese propylene oxide (PO) prices have plunged to around yuan (CNY)16,800/tonne ($2,453/tonne) amid increased supply and easing concerns over feedstock propylene costs, sellers and buyers said on Friday.

Prices plummeted CNY1,200-1,300/tonne from a week earlier to CNY16,800-17,500/tonne DEL (delivered), with many deals being done at the lower end of the price range on Friday, according to global chemical market intelligence service ICIS pricing.

The market was expected to be stable-to-soft in the coming weeks, tracking propylene values and the improved supply and seasonally weak demand from the downstream polyols industry was expected to exert downward pressure on prices, the sources said.

Prices reached a historic high two weeks ago at CNY18,600-19,300/tonne DEL after a seven-week rally.

($1 = CNY6.85)

For more on PO, visit ICIS chemical intelligence
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By: Hsin Hun Wan
+65 6780 4359

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