[Plastic] U.S. July propylene contract price rises by 6 cents/lb

In addition, since ethane accounts for a larger share of steam cracking feedstocks in the United States than ever before, and as the demand for heating propane and butane increases in cold months, it is not expected to fluctuate, so the co-production of propylene has also decreased.

Cracking ethane produces ethylene and limited by-products, while cracking propane, butane and other larger molecular weight feedstocks produce propylene and other chemicals.

In addition, due to the sluggish demand for gasoline and the continued decline in the utilization rate of US refineries, the production of refinery grade propylene (RGP) has fallen.

Although the US propylene supply faces some short- to medium-term production constraints, it may be sufficient to meet the slow recovery of demand in the second half of 2020.

The global economic slowdown may mean weak demand for propylene and its derivatives for the rest of the year, and if the coronavirus cases continue to surge, demand may weaken further.

The main export of propylene is as a raw material for polypropylene (PP).

Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, Exxon Mobil, Hill Resources and Shell Chemical.

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