26 June 2013 22:19 [Source: ICIS news]
US initial June CGP contracts initially settled up 3.3%, sources said on Wednesday, splitting from June polymer-grade propylene (PGP) contracts. CGP contracts were starting to settle at 62.5 cents/lb ($1,378/tonne, €1,047/tonne), up from May’s settlement of 60.5 cents/lb.
There had been sentiment for weeks among buyers that IPA could increase for July. Several producers were heard to be considering a 3 cent/lb ($66/tonne) increase in July contracts.
IPA producer Haltermann confirmed earlier this week that they were, indeed, seeking the increase. Several other buyers also said they had received notices from Sasol and Dow Chemical that those companies would also seek the increase.
Several phone calls and emails to both companies for comment went unreturned.
It remains to be seen whether the IPA increase will find traction. Several sources said, however, that strong demand, and an increase in propylene prices the last few weeks, made it likely that those increases would be implemented.
($1 = €0.76)
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