30 November 2012 18:48 [Source: ICIS news]
HOUSTON (ICIS)--A US propylene producer has nominated a 2 cent/lb ($44/tonne, €34/tonne) increase for December, market sources said on Friday, outpacing another supplier that proposed a rollover earlier this week.
The latest initiative, which was proposed by a chemical-grade propylene producer (CGP), would put CGP contracts next month at 57.50 cents/lb.
Meanwhile, the rollover proposed for December would hold CGP at 55.50 cents/lb and keep polymer-grade propylene (PGP) contracts at 57.00 cents/lb.
The proposed increase was likely the result of a small strengthening in propylene spot prices this week, a market source said.
PGP for December traded on Thursday at 54.875 cents/lb, up from a November deal done at 54.000 cents/lb on Monday.
The small increase could be related to the unexpected shutdown of two US crackers in the past few days.
Although spot prices firmed up slightly, propylene demand will be on a softer patch in December, a market participant said, indicating that the slowdown could undermine the prospects of an increase.
US propylene contracts normally settle at the beginning of the month being negotiated.
The monthly contract rose by 4 cents/lb in November on the back of higher spot prices.
($1 = €0.77)
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