US Gulf Coast polymer-grade propylene prices increased significantly by 14.3% in January 2026, following rising costs for crude oil feedstock, supply interruptions, and strong downstream demand for polypropylene. The rise in oil prices, fuelled further by geopolitical tensions in the Strait of Hormuz, ratcheted up production costs and held shipping availability hostage. Added pressure came from late-month propane prices further inflating the propylene economics. On the demand side, solid automotive consumption, making up almost 29% of polypropylene consumption, lent support to domestic buyers, while PP spot prices advanced. Supply was constrained by numerous scheduled and unscheduled plant outages nationwide, along with disruptions at Bayport Polymers, BASF, Chevron Phillips, Enterprise Products Partners and prolonged maintenance at Eastman Chemical’s Longview site. Logistics delays at Houston Port dampen prompt spot availability.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
