13 October 2010 22:34 [Source: ICIS news]
HOUSTON (ICIS)--US propylene contracts for October settled down by 1.50 cents/lb ($33/tonne, €24/tonne), sources said on Wednesday, pressured by weakening demand and anticipated supply length.
The settlement represents a 2.5% drop from September, putting polymer-grade propylene (PGP) at 58.50 cents/lb and chemical-grade propylene (CGP) at 57.00 cents/lb.
Market participants said the drop stemmed from softening polypropylene (PP) demand and expectations that US monomer supply would lengthen in October if Petrologistics starts up its new propane dehydrogenation (PDH) plant as expected.
The unit will produce CGP and PGP, but its start-up - which was originally scheduled for late July - has been delayed several times.
In the spot market, PGP was offered on Wednesday at 57.00 cents/lb, while refinery-grade propylene (RGP) bid/offers were at 45.50-47.50 cents/lb.
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 = €0.72)
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