ICIS launches South Korea domestic PP block copolymer index on 16 August

SINGAPORE (ICIS)–ICIS is introducing a new monthly domestic polypropylene (PP) block copolymer price index for South Korea starting from 16 August.

This spot assessment on a delivered (DEL) basis is ICIS’ first monthly index dedicated to the South Korean market.

The new quote will track locally traded PP block copolymer resins with melt index (MI) between 30 to 60 that are mainly used for automotive applications.

The launch of the quote is motivated by calls for more information and greater clarity on the domestic market conditions from South Korea’s automotive industry as local prices deviate from export values.

Previously, market participants have been using CFR (cost & freight) CMP (China Main Port) and prices of upstream chemicals like naphtha’s, as reference points for domestic discussions.

“ICIS has developed an index that is relevant for the South Korean domestic market,” ICIS Asia managing editor Peh Soo Hwee said.

“This is in line with changing industry developments as taking direction from overseas markets such as China is no longer fit-for-purpose given the very different dynamics in Korea,” she said.