02 April 2013 20:32 [Source: ICIS news]
HOUSTON (ICIS)--US producers have nominated a drop for April propylene contracts, sources said on Tuesday.
Several market players said US propylene producers have nominated a drop of 7 cents/lb ($154/tonne, €120/tonne) for polymer-grade propylene (PGP) and chemical-grade propylene (CGP).
Currently, US March PGP contracts are at 73 cents/lb and US March CGP contracts are at 71.5 cents/lb.
Market players are expecting a drop in April propylene contracts because of lower spot values and soft demand.
The soft demand has been caused by buyers holding on to inventory because of high contract prices, sources said.
Buyers said that US spot PGP prices have fallen significantly since the March settlement, with a trade for April material done on Monday at 60.5 cents/lb.
Major producers of CGP and PGP include Chevron Phillips Chemical, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.78)
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