04 August 2010 17:51 [Source: ICIS news]
HOUSTON (ICIS)--US propylene contracts for August began to settle this week at an increase of 2 cents/lb ($44/tonne, €33/tonne), lifted by strong derivative demand, market sources said on Wednesday.
“It is across the board,” a buyer said, adding that the derivative market was strong both in the US and for exports.
The initial settlements put polymer-grade propylene (PGP) at 57.50 cents/lb and chemical-grade propylene (CGP) at 56.00 cents/lb, as assessed by ICIS.
Another source attributed the 2 cent/lb jump in August to higher PGP spot prices late in July.
PGP for August traded last week at 55.00-56.00 cents/lb, up from July deals done at 54.00 cents/lb in the week ended 16 July.
The uptrend in PGP stemmed from firm demand and also limited supply on the CGP side, a market participant said.
CGP supply was snug, driving buyers of that grade of propylene to the PGP side, the source said.
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 = €0.76)
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