The January propylene contract price settled yesterday at an increase of 9.0 cpp. This equates to a PGP price of 59.0 cpp and a CGP price of 57.5 cpp.
For the balance of Q1, we expect pricing to go up another 2 – 3 cpp. Unfortunately, we are experiencing a repeat of what transpired with the propylene market in 2017 although the price then increased + 20 cpp.
The drivers behind the increase are Dow, Enterprise and Formosa all integrated PDH producers who are buying in the spot market which is driving the price up. Also, propylene inventories are at the lowest levels since 2008 due to production outages from the recent freezing temperatures in the Gulf Coast along with a 1H turnaround season expected to be more extensive due to delayed maintenance related to hurricane Harvey. Also, US propylene exports continue to swing inventory levels and put price pressure on the domestic market.
The new Enterprise PDH unit will need consistent production levels to increase inventories and reverse the current pricing trend.
GreenChem thanks you for your continued confidence and trust, and we are committed to getting you the lowest price possible. With our combined insight into domestic market pricing along with our experienced logistics department, we’re able to offer unbeatable prices for a myriad of products.
Not already a GreenChem customer? You can contact us today by calling us at 561-659-2236 or by completing the contact form below. Thank you!