Welcome to Market Horizons. Our monthly newsletter is written by our knowledgeable business directors and explores the latest in market trends.





An Analysis by Garrett Velarde


The Plaza Group extends our deepest sympathy for all affected by Hurricane Harvey and Irma. The
tragedy caused by these storms will not soon be forgotten. We thank all our vendors and customers
for expressing concern and offering whatever services they could provide. I must also give praise
to the TPG team for working their tails off over these last few weeks despite working from a remote
office and, in some cases, without a home to go back to afterwards. We only got back to our office
base at 1177 West Loop South this past Monday. The people working here are outstanding and more
loyal than we could ever hope for. As a result of these storms and heavy email/phone traffic, the
acetone market update was put off at the beginning of September. This short report will serve as a
mid-month report and another one will be issued in early October.

The MMA Producer-Monthly Barge Contract for August settled at $0.405 per pound. This represents a
roll from July to August. We mentioned things had settled down last report. The non-volatility was
short lived.

Currently, the refinery grade propylene (RGP) spot weighted average is up approximately
$0.09 per pound from mid-month August to mid-month September. Propylene
inventories did see a sizeable increase last week, but most of this C3 intake is likely to be
chemical grade propylene (CGP) and polymer grade propylene (PGP). We expect the bullish run on RGP
to continue for the rest of September due to damaged USGC infrastructure from Hurricane Harvey.

Domestic acetone supply is tight to extremely tight at this time. Three domestic phenol/acetone
producers and one major acetone importer declared force majeure (FM) as a result of damages to
their facilities or their supply chain. All but one of these has been able to produce some sales as
of late. Another Midwest phenol/acetone producer is about to go on a planned turnaround after
coming back up for only a couple weeks after an unplanned outage around mid-August.

Spot domestic truck and rail buyers have seen increases from multiple producers and distributors.
Some have come out with multiple increases. The increases range from
$0.06-0.13 per pound. The Distribution Buyer has held steady at $0.43-0.48 per pound
over the last four I H S reports. We see this range going up somewhere between $0.06-
0.10 per pound on the low and high ends of the range.

The author of this monthly update predicted August’s settlement to remain flat between
$0.39-0.41 per pound. We caught the range. We said in our last report we thought,
“things could be different in a few weeks time”. Well, acetone is drastically different. We
predict September’s settlement to come in between $0.46-0.48 per pound. That’s all for
now folks.

PS-Our last meme concerning the Houston Texans drew some well-deserved laughter from some after
Week 1’s abysmal performance. Laugh it up! But, we got this guy at the helm now. Best believe there
will be a glorious “shooting bow and arrow” gesture tonight
after a TD in Cincinnati!




The Plaza Group · 1177 West Loop South, Suite 1450 · Houston, Texas 77027

Phone (713) 266-0707 · Fax (713) 266-8660 · Orders (800) 876-3738 · Email contact@theplazagrp.com


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