US PP expected to roll in Oct, drop in Nov – buyer

DUSSELDORF, Germany (ICIS)–A US polypropylene (PP) buyer said on Friday that October monthly contracts will probably stay unchanged but that November should see a price cut.

PP contracts increased 3.5 cents/lb in August and 6 cents/lb in September, following increases in feedstock propylene during those months.

“The gain in September will be neutralized by the end of the year,” the buyer said, speaking on the sidelines of K Fair, the huge plastics trade show this week.

The buyer attributed the possible reduction in November to the recent restart of Dow’s new propane dehydrogenation (PDH) plant in Freeport, Texas.

Dow confirmed earlier this month that its PDH unit is running at designed rates following a series of hiccups that have plagued the plant since startup in December 2015.

PDH units produce on-purpose propylene and add to the feedstock supply. The Dow unit has a capacity of 750,000 tonnes/year.

The 20th K Fair runs 19-26 October in Dusseldorf, Germany.