Spot C3 in Asia and Europe plunges on lower crude, US shows uptick
According to the weekly average data from ChemOrbis Price Wizard, spot propylene prices on FOB Korea basis have cumulatively lost $245/ton since they hit a four-year high in around mid-October. The continued erosion in Asia’s spot propylene prices was mostly attributed to supplies outpacing demand and the ongoing losses in crude oil futures.
In a similar vein, European spot propylene prices followed crude oil and naphtha prices lower and hit their lowest levels in almost eight months. The sentiment was also weighed down by lengthening propylene supply, which stemmed from the logistical constraints amid chronic low water levels in the Rhine River.
ChemOrbis Price Wizard data reveal that spot propylene prices on FD NWE basis have witnessed a cumulative decrease of $178/ton on weekly average since the downturn began in late September.
On the other hand, the spot propylene market in the US gave up its earlier weakness and rebounded amid production issues. Data from ChemOrbis Price Wizard reveal that spot propylene prices on FD USG basis snapped their four-week long losing streak with a modest gain of $22/ton from the previous week. However, prices were still below the peak levels recorded earlier this year.
The slight uptick was mostly driven by a short-lived shortage at Enterprise’s 750,000 tons/year PDH unit in Mont Belvieu, Texas last week.