HOUSTON (ICIS)--US February propylene contracts settled lower by 1 cent/lb for the majority of the market amid ample supply and soft demand.
The settlement puts February polymer-grade propylene (PGP) contracts at 32.0 cents/lb ($705/tonne) DEL (delivered) and chemical-grade propylene (CGP) at 30.5 cents/lb DEL.
Spot PGP remained near three-year lows, averaging around 29 cents/lb during the first half of February.
Although propane dehydrogenation (PDH) outages and below-90% refinery rates have resulted in four straight weeks of inventory declines, lacklustre demand for propylene and its derivatives has pressured prices downward.
The main outlet for propylene is as a feedstock for polypropylene (PP). Propylene is also used to produce ACN, propylene oxide (PO), a number of alcohols, cumene and acrylic acid.
Major US propylene producers include Chevron Phillips Chemical, ExxonMobil, Flint Hills Resources and Shell Chemical.
Major buyers include Arkema, Ascend Performance Materials, Braskem, Dow, INEOS, Oxea and Total.
Thumbnail photo by Shutterstock: Propylene is used to make polypropylene.