US polyols prices may rise on higher propylene - buyers

08 September 2009 15:29  [Source: ICIS news]

HOUSTON (ICIS news)--Higher September propylene prices could push through recent price increase nominations in the US polyols market, buyers said on Tuesday.

Producers nominated numerous rounds of price increases of around 8-10 cents/lb ($176-220/tonne, €123-154/tonne) for September and October in an effort to ease squeezed margins.

“The settlement will put pressure on polyols hikes, but demand is still soft,” a polyols buyer said.

US propylene contracts for September were fully settled at an increase of 12 cents/lb, lifted by tight supply and higher refinery-grade propylene (RGP) prices, market sources said. The settlements put chemical-grade propylene (CGP) at 55.50 cents/lb.

The main push behind the increase was a surge in RGP, the price of which rose by more than 15.00 cents/lb in August on the back of tight supply.

Polyols are feedstock chemicals used in the production of polyurethane (PU) foam.

Major US polyol producers include Dow Chemical, BASF, Bayer and Shell.

($1 = €0.70)

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By: Leela Landress
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