US PP margins slip on naphtha rise, but at record high

HOUSTON (ICIS)–US polypropylene (PP) margins slipped during the week on rising naphtha, but remain at a record high, according to data in the ICIS margin report on Monday.

Integrated contract PP margins (naphtha) declined by 0.77 cents/ lb this week, largely because naphtha costs increased by 3.8%, the report said.

Margins for buying spot refinery-grade propylene (RGP) and selling contract PP fell 0.52 cents/lb because of the lower settlement of the January propylene contract price (-0.5 cents/lb).

Yet average January contract PP margins (RGP) are 2.46 cents/lb higher than average December margins, mostly because of the higher PP contract price (up 2.5 cents/lb).

PP margins are at a record high since ICIS margin records began in January 2000, the report showed.