US propylene inventories rise 2.1% on production

HOUSTON (ICIS)–US propylene inventories rose 2.1% during the week ended 18 September, according to data released Wednesday by the US Energy Information Administration (EIA).

Inventories of non-fuel refinery-sourced propylene rose to 4.524m bbl, up from 4.429m bbl a week ago.

Despite refinery operating rates falling during that period, gasoline production was 2.6% higher, the EIA said.

Gasoline production is expected to start declining in late September through the rest of the year on less demand and a shift in focus toward distillate production.

Refinery-grade propylene (RPG) demand remains somewhat curtailed by higher-than-normal production of propylene from crackers.

However, RGP for cumene production is expected to increase on news of the reopening of Haverhill Chemical’s phenol/acetone plant in Ohio, which could happen as early as late October.

Year on year, propylene stocks are 45% higher from 3.122m bbl for the week ended 19 September 2014.