US November propylene partially settles down 1 cent/lb

09 November 2010 17:12  [Source: ICIS news]

HOUSTON (ICIS)--US November propylene contracts were partially settled at a decrease of 1 cent/lb ($22/tonne, €16/tonne), market participants said on Tuesday.

A supplier was still pushing for a rollover from October, but a full settlement was expected in the next few days, a buyer said.

If finalised, a 1 cent/lb decrease would put November chemical-grade propylene (CGP) contracts at 56.00 cents/lb and polymer-grade propylene (PGP) contracts at 57.50 cents/lb, as assessed by ICIS.

Sources in the downstream polypropylene (PP) sector said a 1 cent/lb decrease would be less than expected at the end of October, when November propylene was projected to fall by 2-4 cent/lb.

“All the sudden, the C3 supply is tight again,” a buyer said, citing low refinery utilisation rates and operating problems at several olefins plants.

Another buyer said plant outages played a large role in supporting propylene prices, but rising crude oil prices were also a factor.

Polymer-grade propylene (PGP) traded at 55.25-55.50 cents/lb on Monday, and November refinery-grade propylene (RGP) traded early on Tuesday at 47.25 cents/lb.

The RGP deal was 0.75-1.00 cents higher than deals in the previous week.

($1 = €0.72)

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By: David Barry
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