NPRA '07: Producer wants hike for US April PGP

26 March 2007 16:46  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--A producer nominated an increase of 3 cents/lb for April polymer (PGP) and chemical (CGP) grade contracts, an olefins source said on Monday.

The nomination comes amid rising spot prices for US refinery grade propylene (RGP).

Spot prices have risen by about 5 cents/lb to 43.50-45.25 cents/lb ($959-998/tonne) over the past two weeks, according to global chemical market intelligence service, ICIS pricing.

A buyer said, however, that it will push for a flat settlement for April based on soft demand.

Derivatives such as polypropylene (PP) and acrylonitrile will not be able to absorb any increases, the buyer said.

March PGP settled at 45.5 cents/lb. CGP for the month was 44 cents/lb, according to ICIS pricing.

Equistar, ExxonMobil, Chevron Phillips, Shell and Enterprise are among the major US producers of PGP and CGP. Basell, Total, Solutia, Dow Chemical, Rohm and Haas and INEOS are among the buyers.

By: Mark Quiner
+1 713 525 2653

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