US PP sellers roll out May hike proposals

23 April 2008 17:37  [Source: ICIS news]

HOUSTON (ICIS news)--US polypropylene (PP) producers have nominated 5-6 cent/lb ($110-132/tonne or €69-83/tonne) increases for May amid record high crude oil prices and surging feedstock propylene values, a major buyer said on Wednesday.

“It’s conceivable that we could see polypropylene prices approach $1 by the end of the year,” the source said. He added that PP supply was tighter than expected this month because of capacity closures and unplanned outages.

So far, 5 cent/lb increase nominations for May have been heard from LyondellBasell, Flint Hills Resources and Sunoco, according to market sources. Other suppliers were expected to make similar nominations.

For March and April, producers nominated increases totalling as much as 7 cents/lb.

PP processors said they are worried about being unable to pass along the rapidly rising raw material prices to end users.

Bulk pricing for injection grade PP in the US was assessed at 76.50-81.00 cents/lb, according to global chemical market intelligence service ICIS pricing.

($1 = €0.63)

For more on polypropylene visit ICIS chemical intelligence

By: David Barry
+1 713 525 2653

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