Olefins - Propylene Americas Monthly Market Overview May 2019

Propylene markets rose quickly through early May but began steadying around 39 cts/lb by mid month. May spot PGP (polymer grade propylene) increased to about 39.5 cts/lb averaged month to date and RGP (refinery grade propylene) increased to 25 cts/lb. April PGP contract settled at a rollover from March. May PGP is unsettled at time of publication. EIA weekly inventory numbers have decreased by about 10% from last month but are still above normal seasonal levels. Crude oil prices have reduced over last month and may cause propane to flex into the US cracker feedslate more than previously expected. PDH operations recovered through May but both Flint Hills and Enterprise experienced operational blips for about 3 days each. Acrylonitrile had a weak first quarter due to operational issues which are persisting into the second quarter, significantly affecting propylene demand into an albeit relatively small demand segment.