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Since market resumed after the Lunar New Year holidays that took place in late January 2017, propylene costs in Asia has steadily firming up, reaching the highest level seen in nearly two years during mid February due to limited availability. However, weak downstream demand dried up the momentum, pulling propylene prices down over the past two weeks, accumulating a total loss of $85/ton, to reach $915/ton FOB Korea term on the first trading day of March, according to CommoPlast data.

Industry participants believed that propylene market would stabilize in the near term as a number of on going cracker shutdown is limiting spot availability in the region. However, the current sluggish demand in the downstream PP market might balance the tightening supply condition and prevent drastic hike in the upstream market.