- Downstream markets continue to show bearishness- Lower propane prices are expected to reduce propylene
supply



March 3 saw the Asian propylene market fall
as buyers continued to struggle with a slow downstream. According to market sources, although prices are
trending lower over the week, buyers remain cautious due to a poor downstream
polypropylene marketplace. Prices for domestic raffia grade PP
in China fell Yuan 75/mt to Yuan 7725/mt. As feedstock
costs ease, some market observers anticipate further falls in regional markets. According to
some sources, China's propane-dehydrogenation plants operate at an average of
60%. This suggests that a rise in run rates could result in higher regional
propylene prices. Due to regional supply tightness, there were few
buying signals in Southeast Asia. This was due to high offer prices and low
purchasing indications. Although exports...