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    Home > Chemial News > Paint & Coating News > U.S. March propylene contract prices plummeted

    U.S. March propylene contract prices plummeted

    Echemi 2021-04-01

    According to the ICIS website on March 30, as the Gulf Coast's production recovered from the interruption caused by the winter storm in mid-February, the US March propylene contract settlement price for most market participants dropped 18.5 cents/ Pounds (US$408/ton).

     

    The month-on-month decrease in March was the largest month since 2008, and the month-on-month increase in the previous month was the largest ever.

     

    However, the prices of polymer grade propylene (PGP) and chemical grade propylene (CGP) are 70.0 cents/lb and 68.5 cents/lb, respectively, which are still much higher than the three-year average (approximately 43.0 cents/lb, respectively) And 41.5 cents/lb).

     

    As of now, the PGP futures trading price in March is 53-85 cents/lb, and in February it is 85-125 cents/lb.

     

    With the shutdown caused by winter storms, the supply of propylene in the United States continues to slow. However, due to low inventories and strong demand, market tensions persist.

     

    Although most propylene production plants have resumed production, the operating rate is still lower than before the storm.

     

    However, the accelerated launch of the coronavirus vaccine and suppressed demand are expected to expand the seasonal rise in demand in the third quarter. If this turns out to be the case, the propylene market will receive a large supply of fluidized catalytic cracking (FCC) units.

     

    With the reopening of the economy and the new US economic stimulus plan to stimulate the consumption of industrial products, the demand for most propylene derivatives remains healthy.

     

    The main export of propylene is as a raw material for polypropylene (PP). Propylene is also used to produce acrylonitrile (ACN), propylene oxide (PO), some alcohols, cumene and acrylic acid.

     

    Major U.S. propylene producers include Chevron Phillips Chemical Company, Enterprise Products, Exxon Mobil, Hill Resources, and Shell Chemical.

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