US propylene inventories climb 1.9% week on week

HOUSTON (ICIS)–US propylene inventories rose 1.9% for the week ended 28 August, the US Energy Information Administration (EIA) said Wednesday, reversing a recent downtrend.

Inventories of refinery-sourced non-fuel propylene rose to 4.612m bbl from 4.524m bbl a week ago.

Stockpiles had fallen nine of the past 11 weeks, according to the EIA, and are down by 14% from 5.370m bbl for the week ended 6 June.

The drawdown had surprised some market players, who said production levels remain robust and demand still soft.

For the last week of August, refinery operating rates fell but gasoline production levels rose 1.5%, likely keeping propylene output strong.

Year on year, propylene inventories are up 26% from 3.648m bbl for the week ended 29 August 2014.

On Wednesday, front-month September refinery-grade propylene (RGP) was heard done at 15 cents/lb ($331/tonne).