01 May 2013 22:11 [Source: ICIS news]
HOUSTON (ICIS)—A US producer has nominated a decline for the May propylene contract, sources said on Wednesday.
Buyers and sellers said one US producer is seeking a 3 cent/lb ($66/tonne, €50/tonne) decrease for May contracts, based on weaker prices during the month.
The nomination would put May contracts for polymer-grade propylene (PGP) at 60.0 cents/lb and contracts for chemical-grade propylene (CGP) at 58.5 cents/lb.
April contracts for PGP settled at 63.0 cents/lb while CGP contracts settled at 61.5 cents/lb.
If the market settles at the nominated rate, it would represent a decline of 19 cents/lb in PGP and CGP contracts in the past three months.
Sources said they had expected a drop in May contract prices, as demand remained soft in April, although it was an improvement from March.
Major US producers of PGP and CGP include Chevron Phillips Chemical, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.76)
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