- Supplies tight amid lower cracker runs- Asia PP margin remains
negative





Despite quiet trading, Asian propylene was
deemed stable on Sept. 5. In an effort to assess the near-term
outlook for propylene, market participants closely monitored upstream and
downstream markets. The price of upstream ICE Brent futures
increased $0.60/barrel between Sept. 2 and Sept. 5 to $95.52-100.50/b. The data
also showed that downstream polypropylene prices remained stable at $920-940/mt
over the same period. According to market sources, spot propylene
supplies remain tight because key Asia-based naphtha-fed steam crackers continued to operate at lower levels due to negative olefins margins. Spot
propylene demand may be increasing for PP production, according to market
sources. However, China's decision to reduce interest rates has not affected the PP
margin. On Sept. 5, the price spread between propylene
and PP...