US April CGP, PGP up 3.5 cts/lb on tight supply

03 April 2008 20:30  [Source: ICIS news]

HOUSTON (ICIS news)--Most US April chemical- (CGP) and polymer- (PGP) grade propylene contracts settled 3.5 cents/lb ($77/tonne) higher from March on the back of tight supply, market sources said on Thursday.

The settlements would put PGP contracts at a record 65.00 cents/lb (€917/tonne) and CGP prices at 63.50 cents/lb, also an all-time high, according to global chemical market intelligence service ICIS pricing.

The previous record was from January, when PGP settled at 62.50 cents/lb and CGP at 61.00 cents/lb.

All producers agreed to the settlement, but two buyers were holding out, market participants said.

Two producers confirmed the figure.

One buyer, who also agreed to the increase, said the settlement was “widespread enough to become final”.

Another buyer concurred, saying any other outcome at this point was unlikely.

Equistar, ExxonMobil, Chevron Phillips Chemical, 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 main buyers.

For more on propylene visit ICIS chemical intelligence

By: William Lemos
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