US June propylene contracts settle at split for PGP, CGP

27 June 2013 19:49  [Source: ICIS news]

HOUSTON (ICIS)--US June polymer-grade propylene (PGP) and chemical-grade propylene (CGP) contracts settled by different amounts for the first time since 2011, sources confirmed on Thursday.

Buyers and producers confirmed that June PGP contracts moved up by 3 cents/lb ($66/tonne, €51/tonne), while CGP contracts increased by 2 cents/lb.

This puts US June PGP contracts at 65 cents/lb and June CGP contracts at 62.5 cents/lb.

The split in movement is the first for propylene since March 2011, when PGP contracts fell by 5 cents/lb and CGP contracts fell by 1 cent/lb.

The increase in PGP came in line with expectations and a nomination for an increase of 3 cents/lb.

Market sources said spot trading of PGP strengthened in June, with deals completed between 62.000-63.375 cents/lb, compared with 59.250-61.750 cents/lb in May.

The increase was mostly attributed to buyers continuing to replenish inventories, higher feedstock costs for refinery-grade propylene (RGP) and some tightness of supply.

US CGP contracts experienced a smaller increase as demand was not as strong, sources said.

The split settlement widens the gap between PGP and CGP to more than 1.5 cents/lb for the first time since February 2011, when the gap was 5.5 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 = €0.77)

By: John Dietrich

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly