US polymer-grade propylene nears 10-year high on tight supply, strong demand

Houston — US Gulf Coast spot polymer-grade propylene hit an almost 10-year high Feb. 4 as February PGP rose 2.25 cents, S&P Global Platts data showed.

Spot PGP was assessed at 87.25 cents/lb, its highest level since May 20, 2011, when it was assessed at 89.5 cents/lb, Platts data showed.

Sources attributed the price hike to tight supply and high demand. Enterprise Product Partners started a six-week planned maintenance on its Mont Belvieu, Texas, propane dehydrogenation unit Feb. 1, according to olefins sources. The planned maintenance, coupled with strong downstream demand, boosted PGP prices, sources said.

Spot PGP prices have been on an upward trend since Nov. 20. Since then, it has jumped 128%, or 49 cents/lb.

The spot assessment has also recovered more than 368%, or 68.625 cents/lb, since posting an 11-year low of 18.625 cents/lb March 23, amid demand destruction from the coronavirus pandemic.