08 September 2009 15:29 [Source: ICIS news]
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)To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections