20 September 2012 22:29 [Source: ICIS news]
HOUSTON (ICIS)--An initial US propylene settlement for September was heard on Thursday at an increase of 1 cent/lb ($22/tonne, €17/tonne), but information about a potential full-market agreement remained elusive.
The increase, if confirmed, would put polymer-grade propylene (PGP) contracts in September at 51.50 cents/lb and chemical-grade propylene (CGP) contracts at 50.00 cents/lb.
One market participant said the 1 cent/lb increase would likely gain traction, while others had yet to hear that an initial agreement had been reached.
US propylene contracts normally settle at the beginning of the month being negotiated, but the settlement for September has lingered because of widely divergent views on price direction among buyers and sellers.
US producers had originally nominated increases of 4 cents/lb and 2.50 cents/lb for September as a result of higher spot prices at the turn of the month.
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 = €0.77)
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