US propylene inventories hit two-year low amid high prices

28 August 2013 21:33  [Source: ICIS news]

HOUSTON (ICIS)—US propylene inventories reached a two-year low amid tight supply and high prices, government data showed on Wednesday.

US inventories of non-fuel refinery-sources propylene fell to 2.793m bbl for the week ended 23 August, down by 4.0% from 2.908m bbl a week ago.

This is the lowest propylene inventories have been since they were 2.347m bbl the week ended 26 August 2011.

Several crackers experienced production issues during the week, and sources said the propylene market has been tight for much of the current quarter.

Additionally, higher prices for US refinery-grade propylene (RGP) have led to a decline in buying interest from the petrochemical sector.

US RGP for August was heard bid at 59.5 cents/lb ($1,312/tonne, €984/tonne) during the week against offers at 62.0 cents/lb.

The drop in propylene inventories came despite US refinery operating rates increasing to 91.2% for the week ended 23 August from 91.0% a week ago.

($1 = €0.75) 

EIA

August 23

August 16

August 9

August 2

Propylene inventories (m bbl)

2.793

2.908

3.038

3.141

Refinery operating rates (%)

91.2

91.0

89.4

90.9


By: John Dietrich
713-525-2600



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