Spot propylene prices have moved higher in Europe, Asia and the U.S. recently based on healthy demand as well as supply limitations in Europe and Asia due to a naphtha shortage. The continuous increases seen over the past week in the upper end of the upstream chain were amongst other factors pushing spot propylene prices up in these regions. This all was related to Plasticstoday.com by Chemorbis, the Istanbul, Turkey-based provider of plastics pricing and market information.
The largest jump was seen in spot propylene prices in the U.S., with prices posting a massive jump of $225/ton compared to the previous week's notional level. Why the jump? Rumors of a higher done deal last week, reports Chemorbis, combined with December polymer grade propylene contracts that settled with a $66/ton increase. Market sources attributed the continuous hikes to the lack of resistance from derivative markets other than PP, which are absorbing the hikes despite the year-end slowness plus production problems at some of the country's propylene makers....