PP contract margins are based on the September PP contract, which settled up in the last week of August.
Integrated PP contract margins for material made from naphtha dropped almost 9% as feedstock costs rose by 2.47 cents/lb. Co-products increased almost 4% for contract naphtha but fell 11% for spot material.
Another drop came in integrated PP contract margins based on propane dehydrogenation (PDH), which dropped for the fifth week in a row, falling almost 3% on a 5% gain in propane feedstock costs.
PDH contract margins have dropped in seven of the past 10 weeks. Spot export margins based on PDH fell almost 4%.
The exception remained integrated PP contract margins based on refinery-grade propylene (RGP), which rose for the second week in a row, increasing 6% as propylene (RGP) costs dropped by 1.25 cents/lb.