US propylene supply will increase by 10% next year

According to the latest research report of Petrol Worldwide of Houston, benefiting from the increase in the operating rate of ethylene plants, the supply of propylene in the United States in 2010 is expected to increase by 10%, reaching 70 million to 72 million pounds per day. 31,800-23,700 tons / day).
Dan Lipei, president of PetroChina Global Consulting, stated that in the second and third quarters of this year, the US ethylene cracker using liquefied petroleum gas (LPG) as the raw material started at a rate of 90% to 95%, and ethane was used in raw materials. The proportion reached the historical peak while the operating rate of the multi-material ethylene cracker was only 75% to 85%. In this case, the supply of propylene, a by-product of the US cracker, was only 24.7 million pounds per day.
The current U.S. chemical industry is in a recovery phase and will grow slowly in the next few years. The American Chemical Industry Council (ACC) recently estimated that the US chemical production this year will be 6.2% lower than last year, and will increase by 3.4% in 2010 and 4% in 2011. As the economic situation improves, the average operating rate of ethylene crackers in the United States is expected to rise to 85% to 90% in 2010. Lipei said: “Since the operating rate of ethylene cracker using LPG as raw material is close to the full-load production status, the increase in next year will mainly come from the multi-material ethylene cracker. Based on the estimation of the raw material composition of multi-material ethylene cracker, It is expected that the supply of by-product propylene will be expected to increase to 27 million to 29 million pounds per day in 2010, an increase of 10% to 20% from the level in the second and third quarters of this year."
Lipei expects that the 2010 US refinery commodity propylene sales will increase to an average of 41 million to 44 million pounds per month, and this year's average daily sales are estimated at 39 to 40 million pounds. The sales of commodity propylene entering the market in 2010 will increase by 9% to 10% from 2009, and nearly 14% from 2008. With the recovery of demand, the price of propylene in the United States is also expected to increase in 2010. It is expected that the price of refinery-grade propylene will increase by 5-8 cents per pound ($110-$176/ton) from the average price of this year.
According to the latest statistics from the American Petrochemical and Refiners Association (NPRA), US olefin production in the third quarter was up 3% from the second quarter. Among them, ethylene production increased by 2.3% and propylene production increased by nearly 5.7%.

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