PODCAST: Soaring US propylene prices pressure MPG, IPA, ACN and polyols

HOUSTON (ICIS)— As spot propylene prices skyrocket to near-record highs, downstream products are facing production and margin constraints.

Polyether polyol supplies have also been tight as limitations in propylene and propylene oxide (PO) supply have limited operating rates at polyol plants while persistent strength in demand have kept inventory levels under pressure.

Domestic isopropanol  (IPA) prices are rising only incrementally due to muted demand. Despite pushback from buyers because of low demand, prices have grown, but at lower rates.

Domestic mono propylene glycol (MPG) contracts have settled higher for January, primarily driven by a significant increase in propylene contracts.

US acrylonitrile (ACN) export prices have continued to surge, tracking surging feedstock propylene costs against the backdrop of tight supply and strong demand.

Propylene shortages are weighing on downstream operating rates in the Americas.

Market experts Deniz Koray, Lucas Hall, and Zachary Moore discuss this and more in this podcast interview by Anna Matherne and Alex Snodgrass.