US propylene inventories fall 9.5% week on week to 12-week low

05 June 2013 20:47  [Source: ICIS news]

HOUSTON (ICIS)--US propylene inventories fell by 9.5% week on week, reaching a 12-year low, according to data released on Wednesday by the US Energy Information Administration (EIA).

US inventories of non-fuel refinery-sourced propylene fell to 3.091m bbl for the week ended 31 May, down from levels of 3.414m bbl the previous week.

This is the lowest inventories have been since the week ended 1 March, when they were at 2.963m bbl.

The decline in inventories happened despite refinery operating rates increased to 88.4% from 86.4% week on week.

A source said that some of the decline could be attributed to refineries consuming some of their propylene to put into gasoline for alkylation purposes.

Additionally, demand for refinery-grade propylene (RGP) has picked up for use in plastics production.

US RGP for June was heard bid at 54 cents/lb ($1,190/tonne, €905/tonne) against offers at 57 cents/lb on Wednesday.

($1 = €0.76)

EIA

May 31

May 24

May 17

May 10

Propylene inventories (m bbl)

3.091

3.414

3.469

3.552

Refinery operating rates (%)

88.4

86.4

87.3

88.0


By: John Dietrich
713-525-2600



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