Propylene Asian spot prices remained firm this week, with supply limitations pushing prices higher despite sluggish crude oil prices. Meanwhile, spot propylene prices in both Europe and the US were mostly stable during periods of relatively limited market activity. Supply is reportedly particularly tight in NE Asia, although buyers in SE Asia were also complaining of limited supplies as propylene sellers within the region are diverting their cargoes to NE Asia where higher prices are obtainable.

US propylene makers seek 3 cent/lb Sep hike on strong demand [ 26 Aug, 2010]

US propylene producers nominated a 3 cent/lb ($66/tonne, €52/tonne) increase for September on the back of strong demand and tight supply, market sources said on Thursday.

Sentiment among buyers was that propylene contracts would climb again in September, but consumers were forecasting an increase below the proposed nominations.

“That's aggressive. I thought 2 [cents/lb] should be enough,” a market participant said, referring to the first initiatives.

US polymer-grade propylene (PGP) in August settled at 57.50 cents/lb, up by 2 cents/lb, while chemical-grade propylene (CGP) contracts rose to 56.00 cents/lb, also a 2 cent/lb increase.

But the source conceded that producers could make a case for a 2.50 cent/lb jump, citing a recent September PGP spot deal done at 57.50 cents/lb.

PGP began August trading at around 55.00 cents/lb. The product was last heard offered at 60.00 cents/lb.

US propylene contracts usually settle at the beginning of the month being negotiated.

Market sources said two propylene producers had nominated 3 cents/lb for September, and at least one more producer is expected to step out with its initiative in the coming days.

Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell and Shell Chemical are among the major US producers of PGP and CGP.

Dow Chemical, INEOS, Ascend Performance Materials and Total are among the main buyers.

Source: ICIS

Lummus to build propylene plant in China [ 11 Aug, 2010]

Tianjin Bohua Petrochemical has awarded the contract to build a new propylene plant at Tianjin in China to Lummus.

The propane dehydrogenation plant will have a capacity of 600,000 t/y. It will be China’s first such facility and the largest in the world when it begins operations, expected in 2012.

The plant will use Lummus’ Catofin dehydrogenation process. This continuous process uses fixed bed reactors with a catalyst and can achieve onstream efficiencies of 98%. The cyclic reactor sequence is entirely computer controlled. The process can also be used to produce isobutylene, and six such plants are currently in operation around the world. Several propane dehydrogenation plants are currently under construction.

Source: tcetoday.com