27 June 2013 16:07 [Source: ICIS news]
HOUSTON (ICIS)—US daily propylene production from crackers fell by 9.0% month on month in May, according to data from the Hodson Report, released on Thursday by consulting firm Jacobs Consultancy.
US cracker daily propylene production in May was 27.52m lb/day (12,483 tonnes/day), down from April’s level of 30.23m lb/day.
The drop in production of propylene from crackers was mostly fuelled by several planned and unplanned shutdowns, as well as a shift away from propane usage as a feedstock.
US May cracker operating rates fell to 82.9% from 90.3%, the report said. Three planned outages and seven unplanned outages were largely the reason for that.
The outages outweighed an additional day of production in May compared with April, pushing total propylene production to 853m lb from 907m lb, a 5.9% drop.
The decline in propylene production from crackers was also fuelled by less propane usage as a feedstock.
Propane usage in April was 14,948 bbl, 30.8% of all feedstocks. In May, total propane usage was 13,751 bbl, 29.8% of all feedstocks.
The decline in production in May tightened supply and helped push US spot prices up by 2.0-3.5 cents/lb ($44-77/tonne, €34-59/tonne), as assessed by ICIS.
($1 = €0.77)
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