Propylene inventories gained roughly 11,000 barrels to close at 2.122 million barrels for the week ending October 22, according to data released by the Energy Information Administration.
Still despite the increase, inventories remained at their lowest levels since September 2009. Wednesday's figures marked a 1.072 million barrel decline in inventory levels since the beginning of the year.
Meanwhile, October spot PGP was last heard offered this week at 55 cents/lb, though buyers were largely absent. Sources pegged spot slightly below that level leading some to expect a 3-4 cent decrease in the November propylene contracts.
With spot estimated near 54.74 cents/lb and the October contract settlement at 58.50 cents, there was justification for a decrease, sources said. At time of publication though, no firm announcements were heard.
In spot, November PGP continued to be offered at 55 cents/lb MtB pipe, but buyers were few as some expected prices to move lower going forward. One factor that could contribute to lower prices was the recent start up of Petrologistics new propylene plant at Houston, Texas.
While confirmation from Petrologistics was not immediately available, a buyer confirmed that the unit was producing on spec material. The company was expected to yield 70% CGP and 30% PGP from the 1.2 billion lbs/year plant.
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