Propylene prices down for fifth week in a row impacting acrylic chain

Propylene prices fell for the fifth consecutive week in Asian markets losing almost US$75 over the period. The buy-sell gap widened as buying indications were lower than selling ideas at over US$1,000 a ton. In US, spot chemical grade propylene price dropped to a 6-year low as inventories approached 40-month high. Supply snags continued to pressure European propylene prices as unusual number of outages tightened supply. Asian propylene markers were down US$25-34 a ton FOB Korea week on week. European chemical grade propylene prices surged Euro45 a ton FD NWE on the week while US spot chemical-grade propylene dropped US cents 4 on the week.

Acrylonitrile prices in Asia declined on weak buying interest and limited spot offers. In China price were lower in domestic market on weaker demand for spot cargoes. US export assessment on mixed fundamentals and discussions were in wide range. European spot price was flat, and producers were yet to pass through rising propylene costs. Acrylic staple fibre producers saw healthy liquidity, given passable demand. Prices rolled over in China, Pakistan and India. Asian acrylonitrile marker, the CFR FEA was down US$25 on the week while US acrylonitrile export assessment was down US$25 week on week.

Acrylic fibre makers saw healthy liquidity given the passable downstream demand. Overall inventory was at a low level, amid favorable sale/production status. However, overall trading atmosphere was insipid although prices remained higher and buying interest still thin, leading to lackluster transactions. Prices rolled over in China, Pakistan and India. It is expected that acrylic fiber market will remain range bound in coming week.

Courtesy: Weekly PriceWatch Report