15 April 2011 18:47 [Source: ICIS news]
HOUSTON (ICIS)--Initial US propylene (C3) contracts for April rose by 15 cents/lb ($331/tonne, €228/tonne), market sources said on Friday, citing initial agreements reached at that level.
The 20% increase, which stems from tight supply, puts polymer-grade propylene (PGP) at a record 87.50 cents/lb, topping the 85 cent/lb settlement of July 2008.
The 15 cent/lb jump puts chemical-grade propylene (CGP) at 86 cents/lb.
According to sources, a number of contracts were agreed at those levels, but a full-market settlement was yet to be reached.
A significant April increase in propylene was widely expected because of sharply higher refinery-grade propylene (RGP) spot prices in recent weeks.
Spot RGP is an indicator for trends on the contract side as the product accounts for around 60% of the US propylene market.
($1 = €0.69)
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