News Code : 43484

Dow Chemical's propylene dehydrogenation (PDH) unit in Freeport, Texas, is offline for a turnaround, US olefin market participants said Thursday.

Petrotahlil :Sources said the PDH unit went offline for scheduled maintenance September 26, and the work is expected to last 45-60 days. Originally, sources expected the turnaround to begin in early September, but then learned it had been delayed.

Dow said Thursday it does not typically comment on turnaround activity.

The turnaround helped spur spot October polymer-grade propylene prices 0.75 cent/lb higher to 36.50 cents/lb MtB-Pipe, the highest level seen in nearly two weeks.

Market participants attributed the rise to the turnaround.

One market participant said that as a result of the turnaround, she expects US propylene inventory to begin decreasing. This comes a day after the US Energy Information Administration data showed an increase in inventories last week, the third consecutive weekly rise for propylene inventories. She said "if inventory keeps going down," PGP prices would continue to climb during the turnaround.

Meanwhile, another market participant said he does not expect PGP pricing to rise during the turnaround due to lower crude pricing, polypropylene plant turnarounds and a lack of downstream pull.

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