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Propylene volatility returns USA/ drives solvents price up Q4

September propylene nominations are up 7 cents/lb ($154/tonne) and 8 cents/lb ($176/tonne)

August contract settled up 3.5 at 37.0 cents/lb due to unplanned outages. Propylene contract prices have been rising on higher spot prices, which have climbed 8-9 cents/lb since the end of July.

According to producers, that increase has mostly been tied to tighter supply from crackers, propane dehydrogenation (PDH) units and increased exports, drawing down inventories.

The spike in price has pulled refinery-grade propylene (RGP) prices up a lot to 32.5 more than 10-11 cents/lb in the same period. Propylene may continue to tighten because of refinery production issues in mid-August.
This is all bad news for the value chains, due to weak demand, and the ability of customers to destock. Downstream already  there are several large 5 cent solvent price increases are set for 1 October

11 Comments to Propylene volatility returns USA/ drives solvents price up Q4:

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