Refinery-grade propylene, 93-51-6 which is mostly used as a feedstock for higher-purity propylene such as CGP and PGP but can also go into gasoline blending, was the first to surge. 78-63-7 It has risen more than 21 cents/lb since January 17, last assessed Tuesday at 64-64.50 cents/lb.

PGP and CGP also moved up aggressively, gaining nearly 15 cents/lb since January 13 on tightening supply and higher RGP values. PGP was last assessed Friday at 71.5 cents/lb, while CGP was kept at a 3-cent/lb discount at 68.5 cents/lb.

Rising spot prices prompted at least two major producers to nominate steep increases. ExxonMobil was heard nominating a 22-cent/lb hike, while Shell Chemical was heard seeking a 17-cent/lb increase for CGP.

Producers have argued propylene supply is tightening because of current and upcoming cracker turnarounds and also because RGP production has been curtailed as refineries lower their rates or, in the case of two in the Northeast, go idle because of unfavorable economics.

As recently as mid-January, industry forecasts called for a 5- to 7-cent/lb increase. Sources agreed a hike was expected as olefins markets entered a busy turnaround season that is expected to extend into May.

But that was before RGP spot prices surged, as they played catch-up to propylene alkylation values, which reflect the value of propylene as part of alkylate, a high-octane gasoline blendstock.

Alkylation values for propylene on Wednesday were around 69.25 cents/lb, 614-45-9 as per a Platts estimate.

guidechem.com — Guidechem chemical B2B network provides information on global chemical market quotation and relative chemical Information.Guidechem Chemical Network providing the most complete information of the chemical industry.