Pricing and Markets
August 3, 2020
Dow Announces Additional Polyol Increase
August 3, 2020
Polyol PRICE INCREASE
Effective September 1, 2020, or as contracts allow, The Dow Chemical Company, on behalf of itself and its applicable consolidated subsidiaries (“Dow”), will increase off-list prices by the amounts listed below on all grades and package types of the following Polyol products in North America:
VORANOL US $0.025 / lb
VORALUX US $0.025 / lb
SPECFLEX US $0.025 / lb
Thank you for your continued business with Dow. Please contact your Account Manager if you have any questions related to this communication.
August 3, 2020
Dow Announces Additional Polyol Increase
August 3, 2020
Polyol PRICE INCREASE
Effective September 1, 2020, or as contracts allow, The Dow Chemical Company, on behalf of itself and its applicable consolidated subsidiaries (“Dow”), will increase off-list prices by the amounts listed below on all grades and package types of the following Polyol products in North America:
VORANOL US $0.025 / lb
VORALUX US $0.025 / lb
SPECFLEX US $0.025 / lb
Thank you for your continued business with Dow. Please contact your Account Manager if you have any questions related to this communication.
August 3, 2020
Propylene Rises 6c/lb in July
US July propylene contracts rise by 6 cents/lb as production issues persist
Author: Michael Sims
2020/07/31
HOUSTON (ICIS)–US July propylene contracts settled at a 6 cent/lb increase from June as spot prices rose to one-year highs amid ongoing production issues.
The settlement puts July polymer-grade propylene (PGP) contracts at 32.5 cents/lb ($716/tonne) DEL (delivered) and chemical-grade propylene (CGP) at 31.0 cents/lb.
The settlement marks the largest month-on-month increase since June 2018, when contract prices rose 8 cents/lb from the prior month.
Front-month PGP traded in July at 29.5-39.0 cents/lb, compared with 21.5-28.0 cents/lb in June.
Outages affecting US PGP production include: Dow’s propane dehydrogenation (PDH) unit in Freeport, Texas; INEOS’s cracker in Chocolate Bayou, Texas; Formosa Plastics Corporation USA’s cracker in Point Comfort, Texas; and BASF Total’s cracker in Port Arthur, Texas.
Also, co-production of propylene was reduced as ethane’s share of the US steam cracking feedslate is greater than it has ever been and is not expected to falter as heating demand for propane and butane rises in the colder months.
Cracking ethane produces ethylene with limited co-products, while cracking propane, butane and other heavier feeds yields propylene, among other chemicals.
Furthermore, continued low US refinery utilisation amid depressed gasoline demand has resulted in less refinery-grade propylene (RGP) production. RGP can be upgraded to PGP using a splitter.
Although US propylene supply faces a few short-to-medium-term production constraints, it is likely to be sufficient to meet slowly recovering demand in the latter half of 2020.
A slow global economy likely means demand weakness for propylene and its derivatives for the remainder of the year, with the possibility of further weak demand if coronavirus cases continue to spike.
The main outlet for propylene is as a feedstock for polypropylene (PP). Propylene is also used to produce acrylonitrile (ACN), propylene oxide (PO), a number of alcohols, cumene and acrylic acid.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, Flint Hills Resources and Shell Chemical.
August 3, 2020
Propylene Rises 6c/lb in July
US July propylene contracts rise by 6 cents/lb as production issues persist
Author: Michael Sims
2020/07/31
HOUSTON (ICIS)–US July propylene contracts settled at a 6 cent/lb increase from June as spot prices rose to one-year highs amid ongoing production issues.
The settlement puts July polymer-grade propylene (PGP) contracts at 32.5 cents/lb ($716/tonne) DEL (delivered) and chemical-grade propylene (CGP) at 31.0 cents/lb.
The settlement marks the largest month-on-month increase since June 2018, when contract prices rose 8 cents/lb from the prior month.
Front-month PGP traded in July at 29.5-39.0 cents/lb, compared with 21.5-28.0 cents/lb in June.
Outages affecting US PGP production include: Dow’s propane dehydrogenation (PDH) unit in Freeport, Texas; INEOS’s cracker in Chocolate Bayou, Texas; Formosa Plastics Corporation USA’s cracker in Point Comfort, Texas; and BASF Total’s cracker in Port Arthur, Texas.
Also, co-production of propylene was reduced as ethane’s share of the US steam cracking feedslate is greater than it has ever been and is not expected to falter as heating demand for propane and butane rises in the colder months.
Cracking ethane produces ethylene with limited co-products, while cracking propane, butane and other heavier feeds yields propylene, among other chemicals.
Furthermore, continued low US refinery utilisation amid depressed gasoline demand has resulted in less refinery-grade propylene (RGP) production. RGP can be upgraded to PGP using a splitter.
Although US propylene supply faces a few short-to-medium-term production constraints, it is likely to be sufficient to meet slowly recovering demand in the latter half of 2020.
A slow global economy likely means demand weakness for propylene and its derivatives for the remainder of the year, with the possibility of further weak demand if coronavirus cases continue to spike.
The main outlet for propylene is as a feedstock for polypropylene (PP). Propylene is also used to produce acrylonitrile (ACN), propylene oxide (PO), a number of alcohols, cumene and acrylic acid.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, Flint Hills Resources and Shell Chemical.
July 27, 2020
BASF Declares Force Majuere on TDI
July 24, 2020
Subject: Force Majeure
Dear Valued Customer:
On the week of July 20th, the BASF Geismar, LA TDI plant experienced an unexpected equipment failure which impacted our ability to operate the facility. As a result, BASF is declaring force majeure on TDI and TDI containing blends effective immediately.
We are actively working to make repairs and are taking all necessary steps to resume normal operations. Current projections indicate the production interruption will last at least two weeks. Your BASF account manager will be in contact with you to discuss the status of current and future orders. We appreciate your patience and understanding during this event and will keep you informed of progress.
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