26 August 2011 23:25 [Source: ICIS news]
HOUSTON (ICIS)--US propylene contracts for September are likely to remain steady with August after producers this week nominated a rollover and a small increase for next month, market sources said on Friday.
According to sources, one supplier nominated an increase of 2 cents/lb ($44/tonne, €31/tonne), while another producer proposed a flat settlement.
The rollover, if accepted by the market, would be the second in as many months for the US monomer.
US propylene contracts usually settle at the beginning of the month being negotiated.
In the spot market, refinery-grade propylene (RGP) for August traded at 68.50 cents/lb this week, up from 68.00 cents/lb a week earlier.
September RGP traded at 68.000 and 68.375 cents/lb, up from 68.000 cents/lb last week.
RGP for September was heard offered on Friday at 70 cents/lb.
The increase in spot prices this week was likely related to gains in gasoline and US crude oil prices, which climbed 3.8% for the week amid support from a rally in the stock market.
Major US producers of PGP and CGP include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell, Petrologistics and Shell Chemical.
The main buyers include Dow Chemical, INEOS, Ascend Performance Materials and Total.
($1 = €0.70)
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