28 July 2010 17:47 [Source: ICIS news]
HOUSTON (ICIS)--US August propylene contract price increases were nominated by two sellers at 2.5 cent/lb ($55/tonne, €42/tonne) and 3.0 cents/lb, buyers said on Wednesday.
One of the sellers initially nominated a 1.0 cent/lb increase, but revised its nomination to 2.5 cents/lb, a buyer said.
The price-hike nominations were expected by market participants because of an increase in spot prices in recent weeks.
A second buyer said propylene supply was not significantly tighter than a month ago, and there was enough supply to meet all requirements.
The source also wondered when the market would begin to factor in the start-up of Petrologistics’ propane dehydrogenation plant, with 544,000 tonnes/year of nameplate propylene capacity.
The unit’s startup was postponed earlier this month until August.
Refinery-grade propylene (RGP) traded for July at 44.0 cents/lb during the past week, up from 43.0 cents/lb at the end of June. However, RGP spot prices averaged in the high 30s cents/lb for much of June.
Spot RGP trading is an important indicator for where the propylene contracts might settle, as a major portion of polymer-grade propylene (PGP) and chemical-grade propylene (CGP) is now derived from refinery streams.
Spot PGP was heard traded at 55 cents/lb for August this week, up from a deal at 54 cents/lb a week earlier.
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.
($1 = €0.77)
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