The FOB Korea pen in the propylene market hit a 22-month high Thursday, as the pen was evaluated at $1,000/ mt.
The last time the pen went to this level was in May 2015.
From the start of 2017, the FOB Korea pen has risen 16.28% from $860/mt on January 3. Over the exact same period, the CFR China marker has actually also rallied 13.3%, to reach $1,020/ mt Thursday.
Propylene exports from South Korea in 2016 had risen 76.6% year on year to 156,398 mt, according to the South Oriental Customs and also Profession Growth Institute.
China imports in 2016 increased 4.7% year on year to 2,902,919 mt, according to stats from the China Customs Statistical Information Facility.
The benchmark CFR Japan naphtha price likewise struck a 19-month high at $528.625/ mt Monday, amid growing need from the petrochemical market on the back of stronger margins, S&P Global Platts data revealed. Naphtha is a vital feedstock for propylene.
The walk in rates was driven by a shortage in supply from crucial manufacturers in Northeast Asia.
February normally sees lesser production than the various other longer months. Contractual term obligations as well as healthy and balanced residential demand from the typical producers such as Japan and also Korea have actually minimized the readily available quantities of spot freights.
click here was the vital plants were having turnarounds at around the same time.
Taiwan’s CPC shut its No. 6 naphtha-fed steam biscuit at Linyuan February 15, and the turn-around is anticipated to last regarding 56 days.
The cracker, anticipated to reboot April 12, can produce 430,000 mt/year of propylene. Formosa is anticipated to do partial turn-around from March to April at its 84,000 b/d residue liquid catalytic cracker.
On January 19, Japan’s JX Nippon Oil as well as Energy closed its RFCC in Sendai, Japan, owing to technological problems. The plant is anticipated to reboot soon.
JX Nippon will certainly shut the RFCC at its Osaka refinery for scheduled maintenance from around mid-March to mid-April. The RFCC is capable of producing 70,000 mt/year of propylene.
In Southeast Asia, Thailand’s IRPC shut its vapor biscuit and olefins conversion system in Rayong February 1.
The shutdown is expected to last around 45 days, although there is no confirmation yet on the restart date.
The mixed manufacturing ability of the systems is roughly 400,000 mt/yr of propylene, Platts had reported earlier.
“The sporting activity market is extremely tight, as well as no cargoes appear offered,” stated a local source.