US PP margins fall on higher feed costs

26 September 2016 18:26 Source:ICIS News

HOUSTON (ICIS)--US integrated polypropylene (PP) margins fell across the board during the week ended 23 September on higher feedstock costs, the ICIS margin report showed on Monday.

Integrated PP contract margins based on refinery-grade propylene (RGP) fell by 4.1% as propylene costs (RGP) rose 0.50 cents/lb.

Integrated PP contract margins based on propane dehydrogenation (PDH) dropped for the third week in a row, falling 3.3% on a 5.7% gain in propane feedstock costs. Spot export margins based on PDH fell by 3.5%.

Integrated PP contract margins for material made from naphtha dropped 2.4% as feedstock costs rose by 0.36 cents/lb. Co-products fell by about 1.2% for contracted naphtha but by 10% for spot naphtha. PP export margins based on naphtha dropped 9.3% during the week.

PP contract margins are based on the August PP contract and will most likely be revised upon settlement of the September contracts.

By Lane Kelley