US PGP, RGP hit new highs: Platts data

Houston — US Gulf Coast spot polymer-grade propylene and refinery-grade propylene hit new highs Jan. 22.

US spot PGP hit a new three-year high Jan. 22 as January PGP rose 2.25 cents day on day, S&P Global Platts data showed.

Spot PGP was assessed at 67.125 cents/lb, its highest level since Jan. 25, 2018, when it was assessed at 68 cents/lb, Platts data showed.

Sources attributed the increase in pricing to tight supply and high demand.

The spot assessment has recovered more than 260%, or 48.5 cents/lb, since posting an 11-year low of 18.625 cents/lb March 23 amid demand destruction caused by the coronavirus pandemic.

US spot RGP reached a 27-month high Jan. 22 as the Platts assessment rose 0.75 cent on the day.

Spot RGP ended the day at 38 cents/lb, its highest level since Oct. 26, 2018, when it was assessed at 39.5 cents/lb, according to Platts data.

The higher pricing comes despite increasing refinery rates. Domestic refinery utilization rates rose for the week ended Jan. 15, according to the US Energy Information Administration.

Refinery utilization rates rose 0.5 percentage point on the week to 82.5%, EIA data showed Jan. 22.