The European Propylene market, particularly in Germany, experienced a significant price increase in August xxxx. Despite a reduced demand due to economic uncertainties, this surge was primarily driven by supply shortages and logistical challenges. The limited availability of imports further exacerbated the situation, allowing domestic suppliers to exercise pricing power.
While a decline in crude oil prices typically leads to lower feedstock costs and, consequently, lower manufacturing costs, the European Propylene market exhibited a contrasting trend. The key factor behind this was a significant reduction in Propylene supply. Several petrochemical plants in Europe faced operational challenges, including maintenance shutdowns and logistical issues. BASF SE in Ludwigshafen, Germany having a capacity of xxxxx MT/yr, and Shell Moerdijk in Moerdijk, Netherlands having a capacity of xxxxx MT/yr exerted a force majeure in their Propylene Plant from xst August xxxx to xxth August xxxx. These disruptions...
