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September US propylene contracts settle at 18 month high
HOUSTON, September 28, 2016 (PCW) -- US propylene contracts for September have fully settled at 43 cpp for polymer grade and 41.5 cpp for chemical grade, levels not seen since April 2015. The agreements represent a 6 cpp increase from August contract prices.
Contract prices have steadily risen since February 2016. They average 33.833 cpp for PGP and 32.333 cpp so far for the year, compared with Jan-Sep 2015 averages of 41.5 cpp for PGP and 40 cpp for CGP. For the past five years, US propylene contract prices have risen during the fourth quarter.
Spot PGP has been trading in a tight range of 40-41.5 cpp this month. In August, spot PGP spent most of the month trading in a range of 35-38 cpp before running up to 42.5 cpp in the final days of the month.
On the feedstock side, spot refinery grade propylene (used to feed PGP and CGP splitters) has been trading in a range of 31-33 cpp this month, up significantly from a range of 22-27 cpp in August. Spot propane (used to feed PDH units) has traded in a range of 44.375-53.125 cpg so far this month (or an equivalent of 10.49-12.56 cpp), compared with a range of 41.75-47.5 cpg (9.87-11.23 cpp) in August. -- Kathy Hall