26 July 2012 22:07 [Source: ICIS news]
HOUSTON (ICIS)--A US propylene producer nominated a rollover for August, market sources said on Thursday, potentially setting the stage for the second flat settlement in as many months.
US polymer-grade propylene (PGP) contracts settled at 52 cents/lb ($1,146/tonne, €940/tonne) in July, unchanged from June, while chemical-grade propylene (CGP) contracts were steady at 50.50 cents/lb.
The outlook for the August contract had pointed to a flat settlement or even a small reduction as spot prices have been steady to softer in the past few weeks.
PGP for July delivery traded on Wednesday at 48 cents/lb, down from 49 cents/lb in the first week of the month, while August PGP traded at 49.50 cents/lb on Thursday.
The US contract is typically priced around 2-3 cents/lb above spot prices.
US propylene contracts normally 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.
($1 = €0.82)
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