US January propylene settles down 2 cents/lb

HOUSTON (ICIS)–US January propylene contract prices settled down 2 cents/lb from the prior month, market sources confirmed on Wednesday and Thursday.

The January settlement puts contract prices for polymer-grade propylene (PGP) at 40.0 cents/lb ($882/tonne) and for chemical-grade propylene (CGP) at 38.5 cents/lb.

The January settlement is the third consecutive monthly decline for propylene contract prices, which have fallen by 20 cents/lb since November.

Propylene contract prices have been under pressure as production has improved, which has allowed inventory levels to build. Stocks reached a seven-year-high in the week ended 11 January.

Propylene production from refineries has been strong amid high refinery rates, and production from crackers has increased due to an increased usage of heavier feedstocks.

US propylene contracts are typically settled in the middle of the month for the current month.

Major US propylene producers include Chevron Phillips Chemical, ExxonMobil, Flint Hills Resources and Shell Chemical.

Major buyers include Arkema, Ascend Performance Materials, Braskem, Dow Chemical, INEOS, Oxea and Total.