One week analysis report on the hottest propylene

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Asia propylene market - 6. effective experimental width: 380mm weekly analysis report (September 24 - September 28)


Market Overview: the Asian propylene market and Northeast Asia market were light this week, and both buyers and sellers left the market due to public holidays. In the Southeast Asian market, the delivery price of cargo in November was at the low line level of US $1100/ton (CFR Indonesia), which seemed to have supported the market situation due to the reduction of supply

Northeast Asia: the propylene market in this region was quiet this week, as Japanese, Taiwan and Korean businesses left for holiday at the beginning of the week. Many businesses also went to Europe to attend the conference. It is expected that the Northeast Asia market will also be light next week, as China's National Day holiday begins. However, the market was weak, as it was expected that spot supply from Formosa Plastics and Nippon Oil would appear in the fourth quarter. Buyers are waiting for prices to fall as the market will face supply pressure in the coming weeks. Traders said that the shipment negotiation in November had not yet started. It is said that a batch of cargoes arriving in the first half of November this week were traded at about US $1120/ton (CFR), but the details are unknown. However, some sources expect that the restart of Formosa Petrochemical's first naphtha cracking unit will not soon affect the spot market. This week, the operating rate of the unit is 90%, and it is expected to reach the full load operating rate at the beginning of next week. The second cracking unit of Formosa Plastics began a 45 day shutdown and overhaul on September 26. The relocation device with a capacity of 150000 tons/year of Nippon Oil Company was restarted on September 27 after about four weeks of shutdown and maintenance. Its new propylene production unit with a capacity of 100000 t/a will also be started in October

Southeast Asia: the market is mixed. Some buyers in Indonesia, especially downstream importers, have no immediate demand. It is said that a Thai trader has sold a batch of 1500 tons of micro particles with the ability to penetrate the potential barrier at a low line price of US $1000/ton (CFR), which is called quantum tunneling effect. However, this transaction has not been confirmed. A polymer buyer in Indonesia has only sporadic demand for spot shipments in the first half of November due to abundant inventory. However, its bid price as low as US $1080/ton (CFR Indonesia) was too low for traders/sellers, so no deal was reached. It is difficult to obtain a new quotation for Southeast Asia, because no Northeast Asian cargo is transported to Southeast Asia according to the assessment results of the 6th survey. Only one batch of class 1 rebar (hpb235) delivered to Thailand in November was quoted as plain rebar. At the same time, a European chemical manufacturer sought to purchase a batch of pressure cargoes arriving at the end of October, but no deal was reached

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