14 October 2011 17:25 [Source: ICIS news]
US PP contract prices for October were at 75-77 cents/lb DEL (delivered) ($1,653–1,698/tonne, €1,190–1,223/tonne) 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) cost. PGP settled down to 64 cents/lb for October.
Spot prices for generic prime PP fell into the low 70s cents/lb range, with wide-spec material selling in the mid-to-upper 60s cents/lb range, sources said.
But with propylene inventories rising and refinery-grade propylene prices falling, buyers said they are expecting prices to fall further in November.
"There is no question the opportunity is there for the market to drop," said one buyer. "I'm trying to get rid of as much as I can possibly get rid of so I will be able to participate in the coming inventory buy-up in November or December."
Major North American PP producers include LyondellBasell, ExxonMobil, INEOS, Total, Formosa, Braskem Americas, Pinnacle Polymers, ConocoPhillips and Flint Hills Resources.
($1 = €0.72)
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