A continued increase in domestic propylene production has pushed inventory up to levels not seen since March. US stockpiles of propylene for non-fuel use ended October with a third consecutive increase, according to data released by the Energy Information Administration Wednesday.
Stocks of propylene for non-fuel use were up by 432,000 barrels on the week at 3.223 million barrels for the week ended October 26, EIA data showed. It was the highest level of inventory since the week of March 9, when stockpiles were at 3.350 million barrels.
Last week's inventory was also above 2.52 million barrels from the same time a year earlier.
US refinery run rates were also up, gaining 0.2% to 89.4% utilization. US propane dehydrogenation units have been operating for most of October, trade sources have said.
The higher production levels and growing inventory have pushed spot prices lower during the month as well. Prompt polymer-grade propylene spot prices were at 48.75 cents/lb FD USG early Wednesday, down from 52.50 cents/lb FD USG a week earlier.
