May 2007

Trends and Resources

HP Impact: HPImpact: New supply and demand parameters in world olefins business

Problems in the supply of propylene began when the global market shifted from cracking heavy to lighter feedstocks for ethylene crackers, according to a recent outlook presented by Earl Armstrong, man..

Weirauch, Wendy, Hydrocarbon Processing Staff

Problems in the supply of propylene began when the global market shifted from cracking heavy to lighter feedstocks for ethylene crackers, according to a recent outlook presented by Earl Armstrong, managing director of DeWitt & Company Inc. (www.dewittworld.com). The heavier feeds produced only minor amounts of propylene. In addition, refinery developments have also slowed, particularly in the US, due to environmental concerns. This curtailed propylene supply. The US also endured operating problems and hurricanes that lifted propylene prices well above those for ethylene. These markets have recovered, but olefin pricing remains high. Despite the strong demand, movement of propylene has beco

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