May 2012

Chemical companies can choose between ethane and propane as a preferred feed as both are providing exceptional margins to make ethylene. With the ability to choose, producers are able to make more propylene to feed their polypropylene lines.

With polyethylene and polypropylene prices moving downward it’s hard to say whether monomers have truly bottomed after this recent move

Polypropylene, having already fallen $0.10 cpp with May’s contract settlement, would seem to be gearing up for another $0.08 to $0.10 cpp move down in June.  (read full article)