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US October propylene contracts settling with increase
HOUSTON, October 31, 2017 (PCW) – Some parties settled US October propylene contracts on Friday at 48 cpp for polymer grade and 46.5 cpp for chemical grade, up 1.5 cpp from September, but at month's end, the agreement was not considered to be market-wide.
Contracts began the year at 41.5 cpp for PGP and 40 cpp for CGP, and reached a high of 52 cpp (PGP) and 50.5 cpp (CGP) in March.
Spot PGP has traded between 44.5-47 cpp during the month.
The 30-day October weighted average for PGP was 44.768 cpp Monday, up 1.514 cpp from September. The 45-day October weighted average for PGP was 45.936 cpp, up 1.512 cpp from September.
On the feedstock side, spot refinery grade propylene (used to feed PGP and CGP splitters) last traded at 34.5 cpp in mid-October, but has since been offered down to 34 cpp. Spot propane (used to feed PDH units), averaged 93.81 cpg so far this month (or the equivalent of 22.28 cpp) compared with 88.744 in September.
Operationally, Flint Hills restarted its 1.45 billion lbs/yr PDH unit in Houston in mid-October. The unit had shut down unexpectedly in mid-August but was said to have been restarted shortly thereafter. Enterprise Products Partners’ new 1.65 billion lbs/yr PDH unit at Mont Belvieu is still in the commissioning stages with on-spec product expected sometime in November.
Most splitters and steam crackers that had shut due to Hurricane Harvey in late August were said to be at normal rates or at close to normal rates. Equistar La Porte was restarting late last week, as was Shell’s Deer Park olefins unit. Chevron Phillips’ Cedar Bayou plant is in phased start-up mode. -- Samantha Hartke