The contract price of propylene in the United States for shipments in July rose 1.5 cents per pound (USD33 per ton) amid rising prices in the spot market, ICIS reported.
As a result of the reconciliation, July contract prices for polymer grade propylene (PGP) are 38 cents per pound, DEL, and contract prices for chemical propylene grade (CGP) – 36.5 cents per pound, DEL.
Market participants expected prices to rise in July against the backdrop of an uptrend in supply and demand, although trading activity was low in late June and early July.
Spot prices in mid-July rose to 39 cents per pound, which put pressure on July contracts.
Earlier it was reported that stocks of propylene in the US market declined last week by 5.5% compared with a week ago. At the same time, the reserves of propylene fell by 38% compared with the record values of this year, which were recorded at the end of February, as exports grew in relation to the same period a year earlier.
Propylene is the main component for the production of polypropylene (PP).
The total volume of PP production in Russia increased by the results of the first six months of the current year by 4% in comparison with the same indicator of 2018 and amounted to about 732 thousand tons. Four manufacturers of seven increased their capacity utilization.
The main producers of propylene in the United States are Chevron Phillips Chemical, ExxonMobil, Flint Hills Resources and Shell Chemical.
The main customers are Arkema, Ascend Performance Materials, Braskem, Dow Chemical, INEOS, Oxea and Total.