Propylene Asia

摘要

OVERVIEW: The Asian propylene market surged this week as another fire at Formosa Petrochemical’s refinery in Mailiao, Taiwan, over the weekend triggered serious propylene supply concerns. In response to the fire, Formosa was ordered Monday to shut two reside fluid catalytic crackers and one olefins conversion unit, which have a combined propylene production capacity of 1 million mt/year. It was also ordered to keep its No. 1 steam cracker shut indefinitely, and also has plans to shut its No. 3 steam cracker from mid-August for annual maintenance. The No. 1 and No. 3 steam crackers have a combined propylene capacity of 950,000 mt/year. A trading source estimated that Formosa’s supply shortfall has resulted in spot demand of 2,500 mt/day. But the bull run stalled Friday after a plunge in global crude oil futures.