US propylene inventories gain, close at 3.037 million barrels

Chemical News: US propylene inventories gain, close at 3.037 million barrels

https://www.chemnet.com Aug 06,2010
US propylene inventories gained ground this week, lengthening by 151,000
barrels to close at 3.037 million barrels for the week ending July 30. The
previous week inventory levels were at their lowest point since mid-April at
2.886 million barrels.

Meanwhile in spot, prices were mostly stable on the week amid thin trade activity. August RGP was last heard bid at 44 cents/lb MtB pipe while PGP was
last heard traded at 56 cents/lb MtB pipe, a penny above the July contract.

In contracts, several participants suggested that the August contract price could increase by 2 cents/lb however negotiations were ongoing and the price was not full settled.

In production, Dow was expected to bring its LHC 7 steam cracker at Freeport, Texas back online in the near future. The company took the unit offline in mid-July following a tripped cracked gas compressor. Dow has an estimated PGP capacity of 1.267 billion lbs/year at Freeport.

Additionally, propylene supplies were expected to improve when Petrologistics begins to feed its new 1.2 billion lbs/year plant at Houston, Texas at the end of the month. Sources said that the company would likely producer more CGP than PGP however had the option to run full out on either product.

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