04 October 2012 07:33 [Source: ICIS news]
By Becky Zhang
Nippon Shokubai’s 460,000 tonne/year acrylic acid plant at
Propylene is the primary raw material for acrylic acid. One tonne of acrylic acid require 600-800kg of propylene.
On Thursday, propylene was being quoted at $1,350-1,360/tonne CFR (cost and freight) NE (northeast)
In the week ended 28 September, propylene spot prices were assessed at $1,370-1,390/tonne CFR NE Asia, ICIS data showed.
“There will be over 20,000 tonnes per month of propylene surplus because of the incident, which is huge to [the regional] propylene market,” a key Japanese trader said.
The trader is facing mounting sales pressure because of scant buying requirement from
“Most of the end-users in
But Chinese buyers may not actively seek spot cargoes given expectations that prices will fall further.
“We received offers from
“The impact of Nippon Shokubai’s incident may not be as serious as expected,” another key Japanese trader said.
Extended maintenance at JX Nippon Oil’s
JX Nippon Oil has delayed the restart at the 460,000 tonne/year naphtha cracker by more than a week to around 8 or 10 October.
Idemitsu Kosan, which one of the major suppliers of propylene to Nippon Shokubai, is mulling cutting production if the shutdown of the Hemiji acrylic acid plant is prolonged, a company source said.
“Firm prices of polypropylene (PP), the major derivative market for propylene, will also lend some support to propylene prices,” the second Japanese trader said.
Asia's homo grade polypropylene prices were assessed at $1,420-1,480/tonne
($1 = €0.78)
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections