US propylene a victim of shale gas? It doesn’t need to be

Plastics Feb 18, 2012 No Comments

PropyleneLiving up to its reputation of late as a volatile market, the US propylene market has undergone another major price swing, with February contract prices up more than 16.5 cts/lb ($364/mt) from January levels.

In case you are keeping count (and if you are a propylene buyer, you have to be), February marked the fifth time in roughly a year’s time the market witnessed double-digit price movements in its contract prices.

The latest increases–which left chemical-grade propylene at 71 cents/lb and polymer-grade propylene at 72.50 cents/lb–were supported by spot transactions across all grades of propylene. Things were even more pronounced in the spot market, with refinery-grade propylene, the rawest of the three grades of propylene, surging more than 25 cents/lb in less than three weeks’ time.

They left many a propylene buyer and downstream market participant scratching their collective heads, trying to figure out how to a) digest the increase, b) pass it on to customers c) absorb it and/or e) all of the above.

via US propylene a victim of shale gas? It doesn’t need to be – The Barrel.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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