Summary of the hottest propylene market in Asia

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Summary of propylene market in Asia

the propylene market is still quiet, and most market participants have reached an agreement that the propylene market price has reached its peak, and the weakness of propylene market fundamentals has affected the shipment in September. Market participants hold different opinions on whether the market price of propylene will continue to be weak

Northeast Asia: the propylene market price in Northeast Asia has not changed significantly this week. There are signs that South Korea can supply more propylene shipments. A polypropylene production plant at Daesan production base in South Korea was shut down unexpectedly for about 4 days, thus providing two batches of 1500 ton prompt cargo for export. It is said that one shipment was sold at $05/ton (FOB Korea) for 4 service customers, and another shipment will be sold at $390/ton (FOB Korea) later this week. It is said that both shipments were sold to a Japanese trader. Earlier, Korean traders tried to sell to Chinese customers at the price of 430 US dollars/ton (CFR China), but failed. Finally, these shipments were sold to a Japanese trader. As far as the symbol HR is concerned, although at least one or two Korean manufacturers pointed out that they might be able to provide August shipments, their intended selling price remained strong, with a price of $400/ton (FOB Korea), but the seller did not reach any deal at this price. It is reported that a set of propane dehydrogenation in South Korea will restart on August 10, which is the second time to report the restart of the device. If the device can start smoothly as reported, it is expected that the propylene supply in South Korea will increase in September. In Japan, it is reported that there was no spot ship supply in Japan until the end of August. The bid price of the shipment shipped at the end of August this week was 370 US dollars/ton (FOB Japan), but it was rejected. The seller tried to raise the price of the shipment to China in the second half of September. The price of polypropylene remained basically stable, about $530/ton (CFR Asia). A report said that the sales price of a batch of propylene cargoes sold to China has a certain operating space; 435 US dollars/ton (CFR China), although China's purchase intention price remains low, the price of Chinese buyers this week is US dollars/ton (CFR China). It is said that the transaction price of a batch of 1500 ton cargoes in the second half of August is 425 US dollars/ton (CFR China). In Taiwan, some problems occurred in Lin Yuan's third cracking unit during July, and the production of Kaohsiung's fifth cracking unit was significantly reduced this week, resulting in a supply allocation rate of only 80% for its customers. Therefore, there is a lot of interest in spot purchase in Taiwan. A trader claimed to have received a bid of US $425/ton (CFR Taiwan). However, the recent increase in the operating rate of Mailiao cracking unit may reduce the supply pressure caused by production problems of other manufacturers in Taiwan

since there is no actual spot transaction in the Northeast Asian market, the above prices basically remain unchanged from last week, and are intended prices rather than actual transaction prices

Southeast Asia: the weakness rate of Southeast Asia market fundamentals is significantly faster than that of Northeast Asia market, partly due to the increase in imports of deep-sea cargo from the United States or the Middle East. Other reasons are: Indonesia's cracking unit reopened on July 25, Thailand's newly expanded 600000 ton cracking unit is expected to start in the first week of August, and the increase in the operating rate of Malaysia's dehydrogenation unit, These factors are the reasons for the acceleration of the weakness of propylene market fundamentals in Southeast Asia. Recently, the unit production in Southeast Asia has shown an unstable state. Last week, the dehydrogenation unit almost reached 100% operating rate, resulting in sufficient supply of propylene. The output of manufacturers is significantly higher than the previous forecast, coupled with the recent large number of spot imports, so the inventory in the hands of downstream customers is quite high. In this tense situation, the import of spot ships to the region has not stopped, and it is expected that the region may force the export of spot ships in September. It is said that the selling price of small batch cargoes sourced from Thailand was 390 US dollars per ton (FOB), but it was later reduced to 380 US dollars per ton (FOB). However, this price still could not meet the traders' purchase interest, and its interest price was 370 US dollars per ton (FOB). The strong trend of propylene shipments in the United States prompted the seller to maintain the price of US dollars/ton (CFR Southeast Asia) for the shipment supplied in September, but this price range was rejected by the buyer. A buyer in India and Israel who chose the appropriate indicator plate and the corresponding pendulum reported that the shipment transaction in early/late September was scheduled at $415/ton (CFR Indonesia) this week. It was also reported that a batch of 1600 tons of cargo and 4000 tons of cargo were traded in the market. According to reliable sources, Saudi Arabia and Iran can provide September shipments. At the end of last week, the price range of some Middle East shipments sold to Indonesia and the Philippines in August was USD/ton (CFR). This week, the market focus has shifted to the transaction negotiation of shipments in September. At present, at least one batch of tons of Middle East cargoes are quoted in the market. At the end of September, its intended sale price was $420/ton (CFR), but there was still no deal. It is expected that the market will still show buying interest in September, especially from Indonesia and the Philippines. In Indonesia, although its cracking unit has been started up this week, the repair of its boiler is still in progress, and it is expected to take at least three months. During this period, the operating rate of the device was about%, because the manufacturer's supply to its pipeline customers was obviously insufficient, it was expected that the customer would need to import about 5000 tons of additional cargo from the overseas market every month to meet its demand

Asian contract price: Taiwan's import contract price in the third quarter: the price of shipments imported from Japan in the third quarter has not been specifically negotiated. Observers believe that market participants should pay close attention to the correlation between spot prices of naphtha, polypropylene and propylene in Asia. It is said that Taiwan's demand in the third quarter was basically met by spot purchase

local contract price of Taiwan polymerization class in June: delivery at US $410/ton. The contract price of chemical grade in June: 377 dollars/ton. This is the tentative price before the new contract price agreement is finally reached. It is reported that the tentative price in May is 411 US dollars/ton (delivery price)

Korean import price in the second quarter: the price range agreed between the supplier and an importer in the second quarter is USD/ton (CFR Korea). Another Korean importer hopes that the price range of the agreement is USD/ton (CFR Korea pays by letter of credit). It is said that the import price range of South Korea in the third quarter is USD/ton CFR. The local contract price in South Korea in the third quarter: the transaction price of pipeline transportation is $410/ton, and the transaction price of shipping is $415/ton (CFR). Note: if the difference between the published spot price and the quarterly agreed price exceeds $50/ton, the monthly contract price in 2001 will need to be adjusted

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