UpdateAsian propylene falls $60/t

08 October 2008 10:40  [Source: ICIS news]

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SINGAPORE (ICIS news)--Propylene prices in Asia fell close to $60/tonne to touch a 16-month low at $1,000/tonne CFR (cost and freight) northeast (NE) Asia on Tuesday for a prompt October delivery cargo, market sources close to the deal said.

 

The 1,500-tonne polymer grade propylene parcel was sold to a Chinese trader with credit usuance at $1,000/tonne CFR, with prices expected to soften further below this key level in the coming days due to the supply overhang in the market, sources added.

 

China, the region’s largest importer of propylene, is bargain-hunting now as severe cutbacks at downstream plants such as acrylonitrile and polypropylene (PP) have reduced the need for propylene imports.

 

Furthermore, domestic propylene prices have fallen into four-digit territory with latest prices in the northern Shandong province heard at yuan (CNY) 9,200/tonne ex-tank, representing a fall of over CNY 1,000/tonne from levels two weeks ago.  

 

($1 = CNY 6.81)

 

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By: Steve Tan
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