29 August 2012 19:49 [Source: ICIS news]
HOUSTON (ICIS)--A US propylene producer is seeking a 4 cent/lb ($88/tonne, €70/tonne) increase for September, market sources said on Wednesday, confirming a nomination that was announced as spot prices are firming.
The proposed increase for September represents an 8% increase from the August settlement.US polymer-grade propylene (PGP) contracts settled at 50.50 cents/lb in August, while chemical-grade propylene (CGP) settled at 49.00 cents/lb.
The September nomination seems "reasonable" given the latest increase in spot prices, a market participant said.
The US propylene contract is typically priced around 2-3 cents/lb above spot prices.
PGP for September delivery traded on Wednesday at 52 cents/lb, rising from 48 cents/lb a week earlier, likely in response to the shutdown of several refineries and at least three olefins plants in US Gulf.
The units were taken off line as Hurricane Isaac pummelled Louisiana with heavy rain and sustained wind speeds of 75 miles/hour (121km/hour).
The category-one storm has left large parts of southern Louisiana without power and several roads closed.
Refinery-grade propylene (RGP), which accounts for 60% of the US propylene market, was bid on Wednesday at 37.50 cents/lb, up from 36.25 cents/lb a day earlier. No offers were heard.
($1 = €0.79)
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