US PP margins fall for naphtha-based, rises for RGP

HOUSTON (ICIS)–US integrated polypropylene (PP) margins based on refinery-grade propylene rose almost 4% during the week ending 20 May, the ICIS margin report showed on Monday.

Integrated PP contract margins based on naphtha fell almost 4% on a nearly 5% increase in feedstock costs, despite a 5% increase in co-product credits. Integrated spot PP margins tumbled more than 11%.

Integrated PP contract margins for refinery grade propylene (RGP) rose almost 4% on a 6% drop in RGP.

Standalone margins for buying spot propylene and selling contract PP increased slightly.

Margins for standalone PP contracts inched up barely, while those for buying contract propylene and selling export PP dropped 7%, and standalone spot export margins fell 6.9%.

Integrated PP contract margins based on propane dehydrogenation (PDH) rose 1% on propane feedstock costs that dropped 2.2%.