16 September 2011 16:08 [Source: ICIS news]
US PP contract prices for September are 89–91 cents/lb ($1,962–2,006/tonne, €1,413–1,444/tonne) DEL (delivered) for homopolymer injection and raffia grade material, as assessed by ICIS.
Much of the PP market has a monomer-based contract that follows the monthly polymer-grade propylene (PGP) price. Propylene settled flat at 78 cents/lb for September.
The settlement was mirrored by stable prices in the secondary market, market participants said.
Buyers and distributors expect prices to roll over or drop in October, depending upon what happens with crude prices.
"When [producers] look around and see how much inventory they still have and how long it is going to take them to get rid of it, we could see some kind of slide in numbers," one distributor said. "Nobody is talking about a massive correction, maybe a couple of cents."
Suppliers, however, predict a rollover or an increase of a few cents for October, based on expected feedstock tightness caused by ongoing cracker outages.
Major North American PP producers include LyondellBasell, ExxonMobil, INEOS, Total, Formosa, Braskem Americas, Pinnacle Polymers, ConocoPhillips, Dow Chemical, Phillips Sumika and Flint Hills Resources.
($1 = €0.72)
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