Clarification: Asia weekly propylene oxide commentary for Aug 15

Due to an error, the Asian propylene oxide weekly commentary for Aug. 15 did not appear in that day's Olefinscan. Below is the commentary for Aug. 15:

Asia Propylene Oxide: Stable amid thin price discussions

• Spot demand sluggish
• Upstream propylene rises $4/mt

Asian propylene oxide was assessed stable week on week at $850/mt Aug. 15 amid thin price discussions. No firm price discussions were heard.

The market sentiment remains bearish amid ample supplies, as several plants restarted following a turnaround in the region. Meanwhile, the Asian PO market was supported by a firmer upstream propylene market.

Platts assessed the CFR China propylene price $4/mt higher week over week at $775/mt Aug. 15. The propylene feedstock market is expected to be stronger due to tight supplies, caused by the shutdown of YNCC's No. 3 naphtha-fed steam cracker in Yeosu.

The cracker, which is able to produce 240,000 mt/year of propylene, was shut down on Aug. 8 amid negative margins, Platts reported previously.

Based on the current propylene price and conversion factor to PO of 0.85, propylene feedstock cost for PO is calculated at $659/mt.

Platts is part of S&P Global Commodity Insights.