The Urethane Blog

Trying to Understand the Propylene Situation

PODCAST: US propylene near record highs, PP demand strong

Author: Michael Sims


HOUSTON (ICIS)–With US spot propylene prices close to record highs due to low inventories, limited production and strong demand, one of its largest downstream uses, polypropylene (PP), is also facing strong demand.

Low refinery utilisation and plant outages are limiting production, while inventories have been low for months. This, combined with strong demand for PP, has resulted in prolonged market tightness.

PP demand remains strong amid an expansion in US manufacturing activity and stronger demand for durable consumer goods.

Demand for packaging and fibre applications has been strong since the start of the pandemic while demand for durable consumer goods applications such as automobiles and appliances has been picking up in recent months.

Propylene expert Michael Sims and PP expert Zachary Moore discuss this and more in the first podcast interview in the propylene series by Anna Matherne and Alex Snodgrass.

Listen to the podcast here: