US propylene for October settles down 1.5 cents/lb

13 October 2010 22:34  [Source: ICIS news]

Petrochemical complex near HoustonHOUSTON (ICIS)--US propylene contracts for October settled down by 1.50 cents/lb ($33/tonne, €24/tonne), sources said on Wednesday, pressured by weakening demand and anticipated supply length.

The settlement represents a 2.5% drop from September, putting polymer-grade propylene (PGP) at 58.50 cents/lb and chemical-grade propylene (CGP) at 57.00 cents/lb.

Market participants said the drop stemmed from softening polypropylene (PP) demand and expectations that US monomer supply would lengthen in October if Petrologistics starts up its new propane dehydrogenation (PDH) plant as expected.

The unit will produce CGP and PGP, but its start-up - which was originally scheduled for late July - has been delayed several times.

In the spot market, PGP was offered on Wednesday at 57.00 cents/lb, while refinery-grade propylene (RGP) bid/offers were at 45.50-47.50 cents/lb.

Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell and Shell Chemical are among the major US producers of PGP and CGP.

Dow Chemical, INEOS, Ascend Performance Materials and Total are among the main buyers.

($1 = €0.72)

For more on propylene visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: William Lemos
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index