Place PP prices have very closely tracked motions in propylene rates over the previous couple of months. Both PP and also propylene steadily decreased from mid-May to the start of July prior to more powerful propylene rates drew PP costs higher from the beginning of July up until the beginning of August. Oilfield Chemicals
felt the effects of the early August dive in power costs quicker than propylene prices did as PP rates began to plunge two weeks ago while propylene rates continued to be firm, leaving area PP prices briefly trading at a discount from area propylene prices. PP regained its costs today as spot propylene rates reacted strongly to the declines seen in upstream costs while PP prices experienced smaller declines.