01 March 2012 00:23 [Source: ICIS news]
HOUSTON (ICIS)--A US propylene producer nominated a 7 cent/lb ($154/tonne, €114/tonne) increase for March, undercutting a recent 15 cent/lb price increase initiative by a rival supplier, market sources said on Wednesday.
The proposed increases come on the heels of a hefty jump in February, when US propylene contracts surged by 30% in a settlement that put polymer-grade propylene (PGP) at 72.50 cents/lb and chemical-grade propylene (CGP) at 71.00 cents/lb.
The increase in February is the first since May 2011, when US PGP contracts hit 97 cents/lb, the highest price on the ICIS data series dating back to January 1986.
US propylene prices have risen in recent weeks amid support from refinery-grade propylene (RGP), the price of which has surged as a result of higher alkylation values at US refineries.
US propylene contracts usually settle at the beginning of the month being negotiated.
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.
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