The steep rise in the price of propylene has been a strong factor in the acrylics markets in all regions over the past few months and is expected to remain a major force as the months go on. There is no clear sense of where propylene prices will end up this year but what is certain is that the uncertainty around propylene will continue to destabilise global acrylics markets.
The rising tide of propylene prices has lifted all boats as downstream markets struggle to keep up with the feedstock market, particularly in North America where propylene prices went up a whopping 10c//lb in January. In addition, in North America, the supply/demand balance in the market is tight as we advance into 2017, mainly based on slow-down in imports from Asia. Prices in Asia rose sharply before US prices did, closing the door on imports.
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