25 January 2012 22:35 [Source: ICIS news]
HOUSTON (ICIS)--A US propylene producer nominated on Wednesday a 22 cent/lb ($485/tonne, €373/tonne) increase for February, market sources said.
The nomination, which represents a 40% increase from January, would take polymer-grade propylene (PGP) contracts in February to 78 cents/lb and chemical-grade propylene (CGP) to 76.50 cents/lb.
The market expected higher nominations for February because of higher prices for alkylate, a gasoline blendstock. Propylene can be used to make alkylate.
However, the 22-cent/lb nomination exceeded market expectations.
No other nominations were heard.
US propylene contracts usually settle at the beginning of the month being negotiated.
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