The Week in Chemistry: US spot PE, PP trading continues at soft levels during first week of May, US chemical railcar loadings down 2.3% to 33,084; petroleum product demand to continue at strong levels in coming decades, says Indian Oil executive

LOS ANGELES , May 12, 2023 (Industry Intelligence Inc.) –

US Resins

Spot resin trading during the first week of May continued within its average volumes so far in 2023, but are below a typical year according to PlasticsExchange reports.

Prime PE prices fell by about a cent for most grades, despite some remaining force majeure conditions and a small boost in demand.

PE producers plan to seek another US$0.05/lb increase for May contract prices, but April contracts were in keeping with March levels.

PP trading was lackluster during the week as buyers await further price decreases. 

Meanwhile, producers aim to decrease May contracts, though to a lesser degree than the propylene monomer cost savings. 

The primary source of this information is Plastics Today.

North American Chemical Railcar

Chemical railcar loadings in the U.S. fell 2.3% during the week ended May 6, reaching a total of 33,084, according to the Association of American Railroads.

Railcar loadings were down 4.7% year-over-year on a 13-week moving average basis. 

However, chemical railcar loadings have risen in eight of the past 13 weeks.

The primary source of this information is the American Chemistry Council.

India Petroleum Refining

Demand for petroleum products will continue at strong levels in the decades to come, according to Indian Oil Corp. chairman Shrikant Madhav Vaidya in an interview with S&P Global Commodity Insights.

However, he noted that a lower carbon footprint will be part of the company’s refining expansion, which will emphasize the petrochemicals, hydrogen and electric mobility end markets.

By 2030, the company aims to achieve petrochemical capacity of 15 million tonnes, compared to its current 5 million, he said. The move would position the company and the country as a whole to be less reliant on imports, offering protection from price volatility.

The primary source of this information is S&P Global Platts.

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