Exported to the European propylene industry

In the recent period, under the influence of factors such as the increase in export volume and the decrease in the operating rate of crackers by manufacturers, the European propylene market has swept away the sluggish demand caused by sluggish demand and various production problems in the past four months, showing some vigor. As of mid-October, overseas users ordered a total of about 100,000 tons of propylene, and the main export areas were the United States Gulf of Mexico and the Americas. However, market participants pointed out that although the weak situation in the European propylene market has eased, it still needs a lot of efforts to restore the unbalanced market to its original balance and order.

Demand for propylene in Asia continued to weaken and prices continued to drop, causing European exporters to reduce their interest in exporting to Asia. After the fall of the Asian market, although European propylene companies took some measures to cope with the slowdown in demand, the oversupply situation in the European propylene market did not improve much. Exports to the United States and other countries in the Americas were not enough to support the recovery of the entire market. Export users are slowly reducing.

It is understood that in the United States, the contract settlement price of propylene in October fell sharply, down by 14 cents/lb from September, or about 309 US dollars/ton. The spot price of the market also followed a significant decline, plus a considerable amount of propylene had been imported before. It is estimated that the US market will not import propylene for a period of time and the European propylene market will face crisis again. Analysts said that if the export and spot flow can be seen as the life-saving straw in the European propylene market, it is now facing the possibility of being flooded.

An employee of a European propylene sales company said last week: “We have been trying to increase our export volume but it has not been effective. Now that the US market has become saturated, Asian markets have continued to fall due to the sluggish Chinese market. Not on imported European products.” The salesman also said that as the dollar weakened, market players began to turn their interest to cheaper, more competitive propylene derivatives. If this trend continues, it will further intensify the European propylene market. Fear atmosphere. However, some market participants believe that the drop in the price of propylene in the United States means that the competition in the propylene industry is intensifying and an industry will not be subverted because of increased competition. This may be a good thing for the restructuring of the European propylene industry.