This week, propylene prices in Asia plunged. The steep price drop was triggered by bearish upstream energy values coupled with persistent sluggish buying interest across the Asian regions, owing to COVID-19 outbreak.

Weaker downstream PE demand and pricing trends, further supported the price fall.

FOB Korea propylene prices were at the USD 650/mt levels, a plunge of USD 70/mt from the previous week. CFR China propylene prices were at the USD 640/mt levels, a week on week slide of USD 85/mt.

CFR South East Asia propylene prices were assessed lower at the USD 620/mt levels, a whopping drop of USD 120/mt from the previous week.

In plant news, Lotte Chemical, South Korea has undertaken an emergency shutdown at its Deasan cracker, following a blast reported on early Wednesday. The cracker has an ethylene capacity of 1.1 million mt/year and propylene capacity of 540,000 mt/year.

In other plant news, JXTG Nippon Oil and Energy, has undertaken a planned shutdown at its cracker, on February 27, 2020. The cracker is likely to remain under maintenance for a period of around 6-7 weeks. Located at Kawasaki in Japan, the cracker has an ethylene production capacity of 460,000 mt/year and propylene production capacity of 235,000 mt/year.

Tosoh Corp, has undertaken a maintenance shutdown at its naphtha cracker on March 4, 2020. The cracker is expected to remain under maintenance till April 21, 2020. Located at Yokkaichi in Japan, the cracker has an ethylene production capacity of 527,000 mt/year and a propylene production capacity of 315,000 mt/year.