20 July 2012 04:35 [Source: ICIS news]
By Peh Soo Hwee
Ethylene spot prices were assessed at $1,060-1,080/tonne (€858.60-874.80/tonne) CFR (cost and freight) northeast (NE) Asia last week while propylene was traded at $1,330-1,390/tonne CFR NE Asia during the same period, ICIS data showed.
This is an increase of 17.5% for ethylene compared with prices a month earlier and also represents a 9.7% gain for propylene over the same period.
The recent disappointing economic data from
The 7.6% growth was also the first time the country’s quarterly GDP fell below 8.0% in the past three years, according to data from the National Bureau of Statistic (NBS).
Ethylene and propylene spot prices in northeast
The outage forced about 95% of the plants at the complex – including the company’s naphtha crackers – to be shut as well as downstream units belonging to various firms within the
However, FPCC’s 1.2m tonne/year No 3 cracker resumed operations on 6 July while the 1.03m tonne/year No 2 cracker was back up and running on 30 June. Both plants are currently operating at full rates.
FPCC also runs a 700,000 tonne/year No 1 cracker that is undergoing scheduled maintenance from 20 June to 5 August.
In addition, market sentiment was further boosted by an unplanned shutdown at CPC Corp’s 385,000 tonne/year No 4 cracker in
However, end-users said the recent spike in olefins prices was increasingly taking a toll on derivative markets.
Market participants now expect supply to lengthen due to the start up of new plants in the region.
CPC is expected to start up its new residual fluid catalytic cracker (RFCC) at
Propylene exports will only be considered after local demand is met, the company source added.
Some naphtha cracker operators in the region have also raised operating rates this month due to improved margins, which have contributed to market expectations of a lengthening in supply that could potentially exert downward pressure on spot prices.
Ethylene margins based on naphtha feed in northeast
($1 = €0.81)
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