NPRA '10: US April propylene to only rise 6-8 cents/lb - buyer

30 March 2010 18:32  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--US propylene contracts will rise in April, but nowhere near the nominations put forward for the month, a buyer said on Tuesday, predicting producers will get about half of the increases they are seeking.

US producers last week nominated increases of 11 cents/lb ($243/tonne, €180/tonne) and 12 cents/lb for April on the back of firm demand and tight supply.

Propylene will likely settle up 6-8 cents/lb, the buyer said on the sidelines of the National Petrochemical & Refiners Association (NPRA) meeting in San Antonio, Texas.

The settlement for April is unlikely to happen until the week after the Easter holiday, the source said, adding that US propylene is likely to remain on an uptrend until mid-summer due to tight supply.

US polymer-grade propylene (PGP) for March settled up by 5 cents at 68.50 cents/lb, while chemical-grade propylene (CGP) settled at 67.00 cents/lb, according to global chemical market intelligence service ICIS pricing.

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

Dow Chemical, INEOS, Ascend Performance Materials and Total are among the main buyers.

The NPRA’s International Petrochemical Conference (IPC) runs through Tuesday.

($1 = €0.74)

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By: William Lemos
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