31 January 2013 22:37 [Source: ICIS news]
HOUSTON (ICIS)--A US propylene producer has nominated a 9 cent/lb ($198/tonne, €147/tonne) increase for February, market sources said on Thursday, outpacing a 7 cent/lb initiative announced by another supplier in the past few days.
The latest nomination, which only applies to chemical-grade propylene (CGP), represents a 12.6% increase from January, when CGP contracts rose by 15 cents/lb to 71.50 cents/lb.
A push for another increase in February was widely expected because of gains in propylene spot prices, which have risen in recent weeks as a result of firm demand and tighter supply after a spree of plant outages.
Talk was heard in the market that the producer that originally nominated the 7 cent/lb increase, an initiative that applies to both CGP and polymer-grade propylene (PGP), had raised its nomination and was now seeking a 9 cent/lb increase as well.
US PGP contracts settled at 73 cents/b in January, also up by 15 cents/lb from December.
US propylene contracts normally settle at the beginning of the month being negotiated.
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 = €0.74)
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