12 December 2012 15:49 [Source: ICIS news]
HOUSTON (ICIS)--US propylene contracts were settling at an increase of 1 cent/lb ($22/tonne, €17/tonne), market sources said on Wednesday, on the heels of higher spot prices in recent weeks.
The initial settlements put polymer-grade propylene (PGP) contracts in December at 58.00 cents/lb and chemical-grade propylene (CGP) contracts at 56.50 cents/lb.
A full-market agreement was yet to be reached, sources said.
US propylene producers had originally nominated a rollover and an increase of 2 cents/lb for the month.
The December increase resulted from a continued strengthening in propylene spot prices, which rose in the past few weeks amid the unexpected shutdown of at least five US crackers.
US propylene contracts normally settle at the beginning of the month being negotiated. The monthly contract rose by 4 cents/lb in November, also on the back of higher spot prices.
($1 = €0.77)
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