Propylene Oxide Prices in the USA Turn Bearish, LyondellBasell Brings Greenfield Capacity Online in Texas
- 15-Mar-2023 6:12 PM
- Journalist: Stella Fernandes
Texas (USA): Since the beginning of March 2023, Propylene Oxide prices have been declining in the USA. As per the data sources, recently, Propylene Oxide prices settled at USD 1670/MT and decreased by almost 1.5% from the February discussions.
During February, the prices were firm and rose consistently amid the weak availability of feedstock supplies. Propylene crackers at LyondellBasell at Corpus Christi, Texas, with a production capacity of 250,000 MTPA, and Chevron Phillips Chemical, with a production capacity of 165,000 MTPA, went under unplanned shutdown at the end of February.
The inventory levels of Propylene Oxide rose in the country amid improvement in supply chain activities. At the same time, due to increasing interest rates by the US Federal Reserve to curb inflation, buyers are conscious while making any purchases. Orders for manufacturing goods declined contracted for the sixth month in a row. The consumption levels of Propylene Oxide decreased from the downstream Glycol and Polyol producers amid stable demand from the paint industries and the Polyurethane manufacturers. Furthermore, during February 2023, the manufacturing PMI declined in the USA as manufacturing activities contracted in the region.
As per the latest reports, LyondellBasell has started its Propylene Oxide unit and Tertiary Butyl Alcohol unit in Texas. In 2021 LyondellBasell completed its construction of the World’s largest Propylene Oxide plant with a production capacity of 470 KTPA at its Channelview complex in Texas. The new production unit has a split facility design to leverage synergies and optimize production.
As per the estimation, “The Propylene Oxide price trend is likely to persist during March, and prices will decline further amid firm availability of supplies in the domestic market and weak orders from Polyol manufacturers. Furthermore, the increasing interest rates by the US Federal Reserve will likely cause a slowdown in the US Economy as strengthening of US Dollar will negatively impact the orders from international importers.”