According to reports, the spot price of propylene in Asia rose by US$60/t FOB Korea last week. Compared with the beginning of the month, the increase was even more than three digits at $125/ton. The market believes that the main driving force for this increase is multiple sets of hearing equipment, planned shutdowns and unplanned shutdowns. The spot price of propylene has reached a 29-month high, which is also the highest level since September 2008. The 485,000 tonne/year cracker of South Korea's Yeochun NCC was shut down last week due to a power failure. According to market participants, the company is planning to restart part of it, but by the end of last week, the operating rate is still about 60%. At the same time, Taiwan’s CNPC is planning to shut down its 930 000 tons/year 4th propylene unit due to mechanical problems. As of February 21, the company's cracker load factor was 90%. In addition, Guangzhou Petrochemical's 220,000 tonne/year cracker was shut down on February 14 and will be closed for 30-40 days. Formosa Plastics shut down its 270,000-ton propylene plant in January for a one-month maintenance. LG Chemical will stop the 390,000 tons/year propylene plant on March 17. In addition, there is Japan Ideki Kogyo and Formosa Plastics will plan to stop some equipment in March-April.
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