Thursday, January 31, 2008

FEEDSTOCK - PROPYLENE

As supplies remained restricted due to plant problems, propylene markets maintained an uptrend. Propylene prices spiked to US$1320/MT in Asia in the week of January 28, 2008. Scarce inventories causing a short supply situation, has led to inactivity in the market; while most buyers are hesitant to buy at levels above US$1250/MT FOB Korea as downstream PP prices have not moved beyond US$1450-1470/MT CFR China. Buying sentiments from China has not caused much movement in the markets, as they continue to be supplied well by local producers.

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