02 January 2013 17:16 [Source: ICIS news]
HOUSTON (ICIS)--US propylene producers nominated increases of up to 23% for January, market sources said on Wednesday, seeking to capitalise on a surge in spot prices in the last few weeks of 2012.
The nominations include a proposed 13 cent/lb ($287/tonne, €218/tonne) increase by a chemical-grade propylene (CGP) producer and an 11.50 cent/lb increase by a producer of both CGP and polymer-grade propylene (PGP).
US PGP contracts for December settled at 58 cents/lb, rising by 1 cent/lb, while CGP contracts were agreed at 56.50 cents/lb, also up by 1 cent/lb.
A significantly larger increase had been expected for January as a result of a run-up in propylene spot prices in December.
PGP for December traded at 63.50 cents/lb in the third week of December, up from 53.500-53.875 cents/lb four weeks earlier.
The increase came on the heels of unplanned cracker outages last month and the unexpected shutdown of an on-purpose propylene facility in Texas.
US propylene contracts normally settle at the beginning of the month being negotiated.
Spot PGP for January delivery was offered at 68.50 cents/lb on Wednesday with no bids.
($1 = €0.76)
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