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US May propylene contracts settle with decrease
HOUSTON, May 12, 2017 (PCW) – US May propylene contracts have settled at 38.5 cpp for polymer grade and 37 cpp for chemical grade, a 7.5 cpp decrease from April. This is the lowest contract price settlement for the year to date.
Spot May PGP began the month trading at 36.5 cpp, fell to its low of the month so far of 35.5 cpp on May 3 and rose to 36 cpp the next day. It last traded at 35.75 cpp on Wednesday.
The month-to-date 30-day May weighted average for PGP was 35.974 cpp as of Friday morning, down 4.071 cpp from April. The 45 day May weighted average for PGP was 37.077 cpp, down 8.637 cpp.
On the feedstock side, spot refinery grade propylene (used to feed PGP and CGP splitters) has traded down to 23 cpp so far this month, lower than its range of 26-33 cpp in April. Spot propane (used to feed PDH units) began the month at 60.75 cpg (17.2 cpp), falling to its month-to-date low of 59.875 cpg (16.9 cpp) on May 2 and settled on Thursday at 62.75 cpg (17.5 cpp).
Meanwhile, US nonfuel use propylene inventories increased last week by 182,000 bbls (6.1%) to 3.147 million bbls, according to EIA data, marking the fourth consecutive inventory build. Propylene stockpiles are at their highest levels since early February.
On the operational front, Flint Hills’ 1.45 billion lbs/yr PDH unit in Houston remains down for its two-month turnaround that began in late March. -- Samantha Hartke