UpdateInitial US CGP settlement for Dec drops 10 cents/lb

09 December 2008 21:56  [Source: ICIS news]

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HOUSTON (ICIS news)--A US chemical-grade propylene (CGP) buyer settled the December price with one of its suppliers at a reduction of 10 cents/lb ($220/tonne, €169/tonne), a source said on Tuesday.

The initial settlement puts CGP at 18.50 cents/lb and follows a 30-cent/lb reduction in November, according to global chemical market intelligence service ICIS pricing.

US propylene prices have plummeted since the summer, pressured by ample supply and soft demand amid the weak US economy.

US refinery-grade propylene (RGP) spot prices fell to as low as 12.00 cents/lb in December, from a peak of nearly 80 cents/lb in July.

RGP values usually indicate trends for higher-purity CGP and polymer-grade propylene (PGP) contract prices.

Total, Solutia, Dow Chemical, Rohm and Haas and INEOS are among the main buyers.

Equistar, ExxonMobil, Chevron Phillips Chemical, Shell Chemical and Enterprise Products are among the major US producers of PGP and CGP.

($1 = €0.77)

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By: William Lemos
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