Second nomination for US May propylene comes in at 1 cent/lb drop

02 May 2013 20:58  [Source: ICIS news]

HOUSTON (ICIS)--A US propylene producer has nominated a smaller drop for May contracts than the first producer had nominated, sources said on Thursday.

Buyers and sellers said a second US propylene producer has come out with its May contract nomination at a decline of 1 cent/lb ($22/tonne, €17/tonne).

On Wednesday, sources said another US producer had nominated a decline of 3 cents/lb for May contracts.

Sources said that a recent spot trade for May polymer-grade propylene (PGP) at 59.25 cents/lb could support the smaller decline.

US propylene contracts typically settle 2-3 cents/lb above spot PGP prices, which could put May prices at 61-62 cents/lb.

April contracts settled at 63.0 cents/lb for PGP and at 61.5 cents/lb for chemical-grade propylene (CGP).

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)

By: John Dietrich

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