Spot prices for January-February RGP up 32% from first week of January to US$0.52/lb. for railcar delivery on gains in alkylation values; increase likely to lend added support to higher prices for February PGP contract prices

Alison Gallant

Alison Gallant

Jan 18, 2012 – Industry Intelligence

LOS ANGELES , January 18, 2012 () – Spot prices for refinery-grade propylene shot higher on the back of gains in alkylation values, ICIS news reported Jan. 18, citing market sources.

January-February RGP was up 32% from a pipeline deal done the first week of January to 52 cents per pound for railcar delivery.

A bid for January RGP came in at 48 cents/lb. pipeline on Jan. 17 but no sellers showed interest, ICIS reported.

Alkylation prices increased to almost 52 cents/lb. in the week ended Jan. 13 from late December's 40 cents/lb. on the back of higher prices for gasoline and lower iso-butane prices. ICIS noted that alkylation prices have an effect on propylene prices because refiners can use RGP to make alkylate in gasoline or sell it to the chemical industry, depending on where they can get a better deal.

The increase in RGP will likely lend more support to an anticipated rise in polymer-grade propylene contract prices for February. Offers for January PGP came in at 59 cents/lb. Jan. 16, but were met with no bids while offers for first-quarter PGP came in at 62 cents/lb. and they were also met with no bids. In the first week of January, PGP deals were done at 54 cents-56 cents/lb., ICIS reported.

The January contract for U.S. PGP rolled over at 56 cents/lb. in the week ended Jan. 13.

A busy turnaround schedule in the U.S. olefins industry in the next few months as well as a rebound in the upstream energy markets also lent support to propylene pricing.

Price increases in February for the monomer could range from 2 cents-4 cents/lb. to 10 cents/lb. due to recent increases in alkylation prices as well as a possible uptick in demand in the next several weeks, market sources told ICIS.

The primary source of this article is ICIS news, Sutton, England, Jan. 18, 2012.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Share:

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025 795

+1 (310) 558 0008
+1 (310) 558 0080 (FAX)

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.