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(ICIS) -- PCK has cut propylene capacity at its refinery fluid catalytic
cracker (FCC) in Schwedt, Germany, as a consequence of reducing gasoline
production in order to manage burgeoning stocks, market sources said on
Tuesday.
The introduction of 10% bioethanol-blended gasoline (E10) in Germany has
proved unpopular with motorists and demand has been very low, forcing refineries
to adjust output accordingly. Production rates were cut last week at the
Schwedt FCC, which produces propylene as a by-product of gasoline
production.
Propylene supply in Europe is being described as “tricky” having been
affected by planned and unplanned production issues since the start of the year,
and the shutdown of the Libyan cracker at Ras Lanuf during a period of
relatively healthy demand.
Shortness of supply had contributed to contract prices reaching their
third consecutive record high in March - ?1.185/tonne ($1.646/tonne) FD (free
delivered) NWE (northwest Europe). Spot prices were also at record high levels.
Two US cargoes were recently reported sold into Europe at ?1.240-1.250/tonne CIF
(cost, insurance and freight) NWE.
mrcplast.com
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