Petrotahlil - Northeast Asia’s spot propylene market could be entering a new period of uncertainty with the recent escalation in the trade dispute between the US and China.
A weaker yuan could dampen China’s import demand
A PDH plant turnaround may provide support to Shandong market.
Uncertainties could result in cautious trading.
Demand may weaken as downstream run rates could fall.
On 10 May, prices fell by an average of $2.5/tonne week on week to $877.5/tonne CFR (cost and freight) NE (northeast) Asia.
The Chinese yuan weakened in the second half of the week that ended 10 May, making imports less attractive for buyers in the key China market.
Coupled with high domestic inventory in east China, the Chinese propylene import market faces a potential bearish run in the month of May.