The propylene arbitrage from USA to Europe is facing logistical issues, limiting cargoes from the US to Europe to just one this week, as per sources in Platts. Limited jetty space in Houston was one limitation, a trader said. "One [to] two ships are working or are on subject for propylene ex-USG to Europe," one broker said.
Platts assessed polymer-grade propylene free delivered to the USG at US$815/mt Thursday, a low not seen since May 2009. Prices were expected to be at around a US$60/mt discount on an FOB Houston basis. Prices in Europe were at Eur 1019/mt [US$1117/mt] CIF NWE Friday. Freight was pegged at $220/mt from USG to Europe. Abundant product in the US has led to lower pricing and the ability to export, sources said, something that had not been seen in three to four years. The ample supplies in the US developed due to plentiful production from metathesis units and weak refinery-grade propylene prices.
27-Apr-15 
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