SINGAPORE (ICIS)–Spot monopropylene glycol (MPG) prices in Asia are expected to take the cue from the feedstock propylene oxide (PO) market in China, market sources said.
Domestic PO prices in China had bottomed out in end-January but their future direction is unclear, they said.
The Chinese markets were closed on 7-13 February for the Lunar New Year holiday.
In the week of 12 February, average prices of bulk industrial-grade propylene glycol (PGI) were flat at $1,025/tonne CFR (cost & freight) northeast (NE) Asia and at $1,200/tonne CFR southeast (SE) Asia, according to ICIS data.
Over the same period, average prices of drummed pharmaceutical-grade propylene glycol (USP) were unchanged at $1,325/tonne CFR NE Asia and at $1,525/tonne CFR SE Asia, ICIS data showed.
Market activity is expected to pick up from this week, albeit at a gradual pace, as downstream unsaturated polyester resins (UPR) plants in China may only resume their pre-Lunar New Year operational levels by the end of the month, market sources said.