U.S Propylene Market Affected by Rising Supply-Demand Variable from Downstream

U.S Propylene Market Affected by Rising Supply-Demand Variable from Downstream

U.S Propylene Market Affected by Rising Supply-Demand Variable from Downstream

  • 12-Oct-2022 3:56 PM
  • Journalist: Jai Sen

Houston (TX): Market Analysts predicted that the Propylene market in the U.S. will likely be impacted by the uncertain and consistently shifting dynamics of the downstream Propylene market globally in the second half of 2022. The global Polypropylene industry is currently challenged by COVID curbs, ongoing geopolitical conflicts, and the arrival of the hurricane season. It has been anticipated that the increased capacity supply of Propylene & P.P. coupled with the regional pricing differences is likely to be vital factors that impact the Propylene (polymer grade) and P.P. market in the U.S. during the fourth quarter of 2022.

In the H1 of 2022, the U.S. Propylene market has been primarily plagued by consistent poor inland logistics, & a deficit in the spot offers, and insufficient pricing competitiveness on the exported volumes. In general terms, Asia Pacific is the end destination for most U.S exported volumes of Propylene and P.P. However, the rapid capacity expansion for downstream P.P. in China has curtailed the demand for off-regional supplies. In recent terms, the Asia Pacific region has witnessed an oversupply scenario that prompted fierce pricing competitiveness amongst the market players resulting in curtailment or temporary shutdown of production of Propylene and P.P. facilities across the Asia Pacific region.   

Whereas during the third and fourth quarters of 2022, the market participants were generally concerned about the potential impact of hurricane-related disruptions of downtime across the values chain. However, the domestic suppliers against the demand showed largely stable pricing, affecting the market dynamics. However, the offshore offers were more attractive and generated better netbacks, which sought the attention of most of the market participants in the North American region.

As per the ChemAnalyst pricing intelligence, the Propylene market in the U.S is observing a dilemma-like situation. That has been mastered by external factors such as seasonal uncertainty and lack of pricing competitiveness from overseas markets. Although the rising inflation, dropping Crude Oil values, and curtailment of Crude Oil to manipulate Crude Oil production will significantly impact the key feedstock value chains.


Track Real Time Prices

Related News

Propylene Market in European Region Rebounds Despite Different Dynamics
  • 21-Nov-2022 12:32 PM
  • Journalist: Peter Schmidt
Propylene Prices Decline Continues in Europe; October Contracts Settle with Another Drop
  • 03-Oct-2022 7:04 PM
  • Journalist: Harold Finch
Substandard Economy and Swindling Upstream Futures Will Weigh Over Europe’s Propylene Market
  • 15-Sep-2022 2:15 PM
  • Journalist: Motoki Sasaki
High Shale Gas Production Pressurizes The Propylene Supply
  • 11-Aug-2022 4:04 PM
  • Journalist: Jung Hoon