30 May 2013 22:26 [Source: ICIS news]
HOUSTON (ICIS)--US spot markets for polymer-grade propylene (PGP) and refinery-grade propylene (RGP) reached their highest level in two months on Thursday, sources said.
US PGP spot prices for current-month material, which is May, moved up to 61.75 cents/lb ($1,361/tonne, €1,048/tonne) on news of two deals done.
Additionally, two deals for front-month material, which is June, were done at 61.75 cents/lb and another deal was completed at 62.00 cents/lb.
On Wednesday, a deal for May material was done at 59.5 cents/lb.
The current-month deals were the highest that spot PGP has reached since deals were done at 63.75 cents/lb on 21 March.
The surge comes ahead of negotiations for the June propylene contract. One producer has nominated an increase of 3 cents/lb.
Based on the most recent deals, sources said the nomination could find traction. Earlier in the week, sources had expected a rollover.
The increase in spot PGP was mirrored by spot RGP prices. A deal for May was heard at 55.75 cents/lb, the highest that current-month material has reached since a deal at 56.5 cents/lb on 14 March.
Additionally, two deals were heard done for June, also at 55.75 cents/lb. Some market players speculated that RGP spot prices are increasing on higher demand from the gasoline sector.
($1 = €0.77)
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