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US November propylene contracts settling with increase
HOUSTON, November 30, 2017 (PCW) – Certain parties were settling US November propylene contracts on Wednesday at 49 cpp for polymer grade and 47.5 cpp for chemical grade, up 1 cpp from October. Not all parties have accepted the November price and 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 for November delivery has traded between 45.75-48.5 cpp during the month.
The 30-day November weighted average for PGP was 47.141 cpp Wednesday, up 1.373 cpp from October. The 45-day November weighted average for PGP was 46.679 cpp, up 0.743 cpp from October.
On the feedstock side, spot refinery grade propylene (used to feed PGP and CGP splitters) traded at 36.5 cpp in mid-November and again at that price at the end of the month. Spot propane (used to feed PDH units), averaged 98.375 cpg so for this month (the equivalent of 23.4 cpp) compared to 93.966 cpg in October.
Operationally, Enterprise Products Partners’ new 1.65 billion lbs/yr PDH unit at Mont Belvieu has yet to come onstream even though executives during the company’s most recent earnings call expected it to be up and running by the end of November. Expectations for start-up are now in the the first half of December. 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. Shell’s Deer Park and Chevron Phillips’ Cedar Bayou olefins units continued the restart process. -- Samantha Hartke