Propylene prices in the United States have fallen due to strong output growth

According to Anxun Houston on January 25, strong growth in U.S. production continued to drag down the contract price of propylene in January, and the market is expected to continue to face downward pressure in the short term.

PVA FIBER

Propylene contract prices in the United States fell at the end of 2018 due to increased propylene production from cracking plants, refineries and other sources, as well as end-of-year de-inventory restrictions on demand. At the end of 2018, U.S. propylene stocks rose to a three-year high.

In 2019, due to the increasing demand for downstream replenishment stocks and the recent price decline, which has increased the interest of propylene derivatives exports, it was originally expected that tight supply would bring some upward pressure on the given price.

Despite the increase in demand, strong production in January has outpaced demand growth. Propylene stocks continued to increase in 2019, reaching the highest level in seven years.

PVA 1799 (PVA BF17)