23 February 2010 04:18 [Source: ICIS news]
By Ong Sheau Ling
SINGAPORE (ICIS news)--Asia propylene oxide (PO) spot and contract prices are expected to rise in the second quarter owing to the expected tight supply in the northeast caused by upcoming turnarounds, market sources said on Tuesday.
AGC would minimise its exports during the turnaround so as to cater to the domestic needs, the representative added.
In the Japanese domestic market, offers for first quarter contracts had risen yen (Y) 10-15/kg ($0.11-0.16/kg) from fourth quarter 2009 levels of Y140-180/kg due to firm costs of upstream naphtha.
February offers in the South Korean domestic market had risen won (W) 250/kg ($0.22/kg) over January levels of W2,050-2,400/kg due to limited supply and earlier hikes in feedstock costs.
"In both the Japanese and South Korean domestic markets, contract prices were talking at higher numbers. Similarly, spot export cargoes to
Buyers were worried that despite sluggish demand from downstream sectors, the tight supply of
"It will get more expensive to buy
A northeast-Asian seller said: "We are likely to rollover March shipment from February as the Chinese just returned to the market and might resist any price change. However, in April, we will offer higher to reflect the tight market."
According to market players, spot sales in February were largely concluded at $1,480-1,550/tonne (€1,080-1,132/tonne) CIF China while March delivery offers for northeast and deep-sea cargoes were cited at up to $1,580/tonne CIF China.
Propylene oxide is used as an intermediate for the production of numerous commercial materials. The largest derivative of
* PO/SM (styrene monomer) unit
** HPPO (hydrogen peroxide to
($1 = Y91.48 / $1 = W1,147.30 / $1 = €0.73 / $1 = CNY6.83)
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