US spot propylene prices fell to a three-year low

According to global petrochemical news on December 5, 2019, Houston reported that the spot price of polymer grade propylene in the United States fell by 1.25 cents on Thursday (5th), to a very low level in more than three years. Market sources attributed the decline of spot propylene price to the over demand and weak demand downstream. Statistics show that the spot polymer grade propylene price was assessed as 29.25 cents per pound fdusg on Thursday, while the latest decline was on March 4, 2016, when it was assessed as 28.75 cents per pound fdusg. Sources said that the weakening demand for downstream polypropylene led to an oversupply of propylene, which led to a drop in the price of spot polymer grade propylene. "Cracking units and refineries are operating well, so supply has increased and [arbitrage] has been shut down for some time," said a trade source Sources also talked about the production of propylene oxide downstream after the explosion of TPC at the port of Nechis on November 27. Statistics show that the price of spot polymer grade propylene has dropped nearly 9% since November 27. The market expects propylene contract price to drop 3.5-4.5 cents per pound in December.