April 24, 2018
April Propylene
Houstong (Platts)–20 Apr 2018 520 pm EDT/2120 GMT
US April propylene contract prices were beginning to settle Friday at a 1 cents/lb decrease — to 46 cents/lb for polymer-grade product and 44.5 cents/lb for chemical-grade product, sources said.
One buyer, one producer and two other market sources confirmed settlement at that level.
The settlement, if accepted marketwide, would be in line with market expectations, which had been talked at a decrease of 1 cents/lb to a rise of 2 cents/lb.
The decline in prices is due to thin demand, sources said.
LyondellBasell declared force majeure on April 6 on polypropylene from its Lake Charles, Louisiana, plant due to a broken extruder, the company said in a letter to customers obtained by S&P Global Platts.
The Lake Charles facility houses two PP lines with a combined capacity of 667,000 my/year.
Meanwhile, polypropylene demand has been heard thin amid expectations that feedstock propylene, and subsequently polypropylene pricing, will fall.
US spot polymer-grade propylene was assessed Friday at 44.75-45.25 cents/lb FD USG for prompt-month (April) deliveries, up 0.25 cent day on day. The forward month (May) was also 0.25 cent higher, assessed at 44.5-45 cents/lb FD USG.
Refinery-grade product on a three- to 30-day basis was assessed 0.50 cent higher at 35-35.5 cents/lb FD USG.
The PGP contract price is generally 2-3 cents above the spot PGP price at the end of the prior month and the beginning of the new month. Refinery-grade propylene pricing is also considered in the formula because it is a large source of PGP.
US propylene contract prices are settled on a monthly basis between major producers and buyers. The process includes price nominations by producers and subsequent negotiations with customers.
–Nida Qureshi, nida.qureshi@spglobal.com
–Edited by Kevin Saville, kevin.saville@spglobal.com
https://www.platts.com/latest-news/petrochemicals/houstong/us-april-propylene-contracts-initially-settling-10375449
April 24, 2018
April Propylene
Houstong (Platts)–20 Apr 2018 520 pm EDT/2120 GMT
US April propylene contract prices were beginning to settle Friday at a 1 cents/lb decrease — to 46 cents/lb for polymer-grade product and 44.5 cents/lb for chemical-grade product, sources said.
One buyer, one producer and two other market sources confirmed settlement at that level.
The settlement, if accepted marketwide, would be in line with market expectations, which had been talked at a decrease of 1 cents/lb to a rise of 2 cents/lb.
The decline in prices is due to thin demand, sources said.
LyondellBasell declared force majeure on April 6 on polypropylene from its Lake Charles, Louisiana, plant due to a broken extruder, the company said in a letter to customers obtained by S&P Global Platts.
The Lake Charles facility houses two PP lines with a combined capacity of 667,000 my/year.
Meanwhile, polypropylene demand has been heard thin amid expectations that feedstock propylene, and subsequently polypropylene pricing, will fall.
US spot polymer-grade propylene was assessed Friday at 44.75-45.25 cents/lb FD USG for prompt-month (April) deliveries, up 0.25 cent day on day. The forward month (May) was also 0.25 cent higher, assessed at 44.5-45 cents/lb FD USG.
Refinery-grade product on a three- to 30-day basis was assessed 0.50 cent higher at 35-35.5 cents/lb FD USG.
The PGP contract price is generally 2-3 cents above the spot PGP price at the end of the prior month and the beginning of the new month. Refinery-grade propylene pricing is also considered in the formula because it is a large source of PGP.
US propylene contract prices are settled on a monthly basis between major producers and buyers. The process includes price nominations by producers and subsequent negotiations with customers.
–Nida Qureshi, nida.qureshi@spglobal.com
–Edited by Kevin Saville, kevin.saville@spglobal.com
https://www.platts.com/latest-news/petrochemicals/houstong/us-april-propylene-contracts-initially-settling-10375449
April 19, 2018
European Epoxy Update
LONDON (ICIS)–European epoxy resins demand looks strong ahead of the second quarter, and looks set to continue on an upwards trajectory.
In this video, to coincide with the ICIS quarterly outlooks, markets reporter Morgan Condon talks Lucy Raitano through the expectations for the next three months.
It comes after tight supply kept prices increasing throughout the first quarter of 2018, driven by strong demand in China.
April 19, 2018
European Epoxy Update
LONDON (ICIS)–European epoxy resins demand looks strong ahead of the second quarter, and looks set to continue on an upwards trajectory.
In this video, to coincide with the ICIS quarterly outlooks, markets reporter Morgan Condon talks Lucy Raitano through the expectations for the next three months.
It comes after tight supply kept prices increasing throughout the first quarter of 2018, driven by strong demand in China.
April 19, 2018
Epoxy Resin Tightness
HOUSTON (ICIS)–US epoxy resins continue to be pressured up by tight supply and high import prices, much like in the first quarter.
The ICIS US liquid epoxy resin contract price had a significant increase of 31 cents/lb ($683/tonne) during Q1 2018.
Meanwhile, market players said most of the 10-12 cent/lb price increase initaitives appear to be going through this month, setting the stage for another rise in the contract price.
“I see [epoxy] resin and feedstock pricing going up,” a source said.
Prices in Asia have remained at or near the record high of $3,000/tonne for all of this year, putting upward pressure on imported material.
“Spot import prices remain firm, ” a source said. “But prices should go down in the near future.”
Imported material has been quoted in the mid-$1.40s/lb, with some sources seeing higher prices in the $1.50s/lb, though this is not market-wide.
However, a gap appears to be re-opening between domestic and imported material, as some sources have noted that prices for domestic material is higher.
As a result, producers in northeast Asia are expected to continue sending cargoes to the US as they anticipate greater netbacks.
Demand from the coatings sector for epoxy resins generally starts to pick up in the second quarter.
But persistent winter weather, especially in the northeast where snow and freezing temperatures have been seen this month, is likely delaying the start of the peak coatings season.
Looking ahead, demand is expected to be strong, with much of it attributed to reconstruction activity in parts of the US that were impacted by hurricanes and wildfires in 2017.
As a result, the markets are not expected to see downward momentum, keeping the situation challenging for buyers.
“The markets are volatile,” summed up a source.
ICIS had assessed the US March liquid epoxy resin contract price at $1.58-1.63/lb DEL (delivered) North America.
Major US epoxy resin producers include Hexion, Huntsman and Olin.
Focus article by Tarun Raizada
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