Propylene Oxide Market Focus After Oil Prices Down

Published: 28 Oct 2009 23:53:06 PST

PUdaily, Shanghai-Starting from mid-week, downstream clients of propylene industrial chains begin with wait-and-see attitudes following crude oil prices decreasing to USD 80/barrel below. For the moment, propylene prices in Shandong and Tianjin stabilize at RMB 8500-8700/t. In Hebei and Tianjin, the local liquid chlorine prices are at RMB 1400-1500/t but at RMB 1200-1300/t in Shandong.

Analyzed from feedstocks prices, the full cost for propylene oxide production by the means of chlorohydrins is at RMB 10500-10800/t and comparatively speaking, leading PO producers can have a better profit, which stimulate prime suppliers in Shandong and Tianjin to increase operation rates and supplies in the future will be enlarged accordingly.

Although the ex-factory prices are offered at RMB 12200-12400/t by leading northern suppliers, the actual transaction prices are ranged at RMB 12000/t.