23 June 2008 22:47 [Source: ICIS news]
HOUSTON (ICIS news)--Two US propylene (C3) producers have nominated July contract price increases of 9 and 14 cents/lb ($198 and $309/tonne), respectively, amid a sustained surge in crude oil prices, market sources said on Monday.
The nominations for July chemical- (CGP) and polymer-grade (PGP) propylene came while June contracts were still unsettled, as one PGP producer remained unwilling to accept a 6 cent/lb increase from May, sources said.
CGP and PGP contracts in May were assessed, respectively, at 67.50 cents/lb ($1,488/tonne, €952/tonne) and 69.00 cents/lb, according to global chemical market intelligence service ICIS pricing.
The proposed 14 cent/lb increase for July took some in the market by surprise, as a nomination of that magnitude was not expected for next month, even after the latest run-up in crude prices.
One buyer dismissed the initiative as a hedge in case crude oil spikes again between now and when contracts settle, possibly in the second week of July, the source said.
Equistar, ExxonMobil, Chevron Phillips Chemical, Shell Chemical and Enterprise Products are among the major ?xml:namespace>
Basell, Total, Solutia, Dow Chemical, Rohm and Haas and INEOS are among the main buyers.
($1 = €0.64)
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