PP trading near the same level with propylene in China
Place homo-PP rates in China have actually been trading near to the same level with spot propylene prices on an FOB Korea basis given that the beginning of August, leading to dramatically squeezed margins for non-integrated producers. Place PP prices restored some costs over propylene this week as area propylene prices toppled at the start of the week as getting passion thinned complying with the current drop in power prices, although place propylene rates have actually given that restored several of the ground shed earlier this month.
Spot PP prices have actually very closely tracked activities in propylene costs over the past few months. Both PP and propylene gradually declined from mid-May to the beginning of July prior to stronger propylene costs pulled PP rates higher from the get go of July until the begin of August. The PP market really felt the results of the very early August dive in energy expenses earlier than propylene costs did as PP rates started to plunge two weeks ago while propylene costs remained strong, leaving place PP rates quickly trading at a price cut from place propylene rates. PP regained its premium this week as area propylene rates reacted strongly to the reductions seen in upstream costs while PP rates experienced smaller declines.
irooildrilling have been battling to preserve a healthy and balanced premium over propylene for much of this year after enjoying strong costs over propylene throughout the last half of 2010. Manufacturers generally target a premium of $170/ton over propylene on their homo-PP costs to China in order to cover products costs from South Korea in addition to conversion prices. Homo-PP costs traded at a premium of $200-300/ ton over propylene from October 2010 to February 2011 but have actually been unable to restore this level considering that. From February to July of this year, homo-PP costs traded at a decreased costs of $70-140/ lot over propylene. After the premium briefly returned to around $160/ton early in July, strong rises in propylene integrated with dull PP need have kept the premium listed below $100/ton throughout the month of August.
Spot PP prices have actually very closely tracked activities in propylene costs over the past few months. Both PP and propylene gradually declined from mid-May to the beginning of July prior to stronger propylene costs pulled PP rates higher from the get go of July until the begin of August. The PP market really felt the results of the very early August dive in energy expenses earlier than propylene costs did as PP rates started to plunge two weeks ago while propylene costs remained strong, leaving place PP rates quickly trading at a price cut from place propylene rates. PP regained its premium this week as area propylene rates reacted strongly to the reductions seen in upstream costs while PP rates experienced smaller declines.
irooildrilling have been battling to preserve a healthy and balanced premium over propylene for much of this year after enjoying strong costs over propylene throughout the last half of 2010. Manufacturers generally target a premium of $170/ton over propylene on their homo-PP costs to China in order to cover products costs from South Korea in addition to conversion prices. Homo-PP costs traded at a premium of $200-300/ ton over propylene from October 2010 to February 2011 but have actually been unable to restore this level considering that. From February to July of this year, homo-PP costs traded at a decreased costs of $70-140/ lot over propylene. After the premium briefly returned to around $160/ton early in July, strong rises in propylene integrated with dull PP need have kept the premium listed below $100/ton throughout the month of August.
