The Week in Chemistry: US PE, PP spot prices hold steady as September ends, October spot ethylene and propylene trade at US$0.2075/lb and US$0.39/lb, respectively; global methanol production lags behind green energy-related demand

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LOS ANGELES , October 6, 2023 () –

 

US Resins: Week ended Sept. 29

The final week of September showed solid spot resin trading with steady prices, according to The Plastics Exchange market update.

Prices were supported by healthy international demand for North American supply, which has offered a cost advantage over other origins.

Meanwhile, PE and PP inventories in the US Gulf were impacted by unplanned production outages in the region, despite a relatively incident-free hurricane season.

PE producers implemented US$0.06/lb in total price increases during August and September.

PP prices increased by US$0.45/lb in September due to growing input costs.

Producers of both resins have nominated contract price increases for October.

The primary source of this information is The Plastics Exchange.

 

US Monomers: Week ended Sept. 29

Spot trading of monomers in the US showed robust activity as September drew to a close, according to The Plastics Exchange market update.

Ethylene prices saw downward pressure early in the week, with spot September deals seen at US$0.2075/lb and US$0.21/lb. in Louisiana and Texas, respectively. By the end of the week, September deals reached US$0.21125/lb.

October ethylene deals also hit US$0.2075/lb.

Propylene prices also dipped slightly early in the week despite curtailed production. 

Spot deals for September were seen at US$0.385/lb early in the week, but increased to as much as US$0.41/lb. on Friday.

September contracts for polymer-grade propylene settled at an increase for the first time since March, reaching US$0.39/lb.

October spot propylene traded at about US$0.39/lb early in the week, before reaching US$0.4025/lb for polymer grade.

The primary source of this information is The Plastics Exchange.

 

Methanol: Opportunities in Green Energy 

Methanol could be among the low-carbon energy sources needed for logistics companies to meet their 2030 climate targets, said CEO of Danish logistics group DFDS In an exchange with S&P Global Commodity Insights.

However, methanol production currently lags behind projected demand.

According to Dutch producer OCI Global, green methanol demand could reach more than 6 million tonnes annually. In contrast, current availability is estimated at 100,000 tonnes per year.

DFDS CEO Torben Carlsen added that methanol capacity is unlikely to be sufficient by 2025.

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

 

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