01 July 2013 22:15 [Source: ICIS news]
HOUSTON (ICIS)--Two US producers nominated increases for July chemical-grade propylene (CPG) contracts, sources said on Monday.
One producer nominated an increase of 2 cents/lb ($44/tonne, €34/tonne), while another producer nominated an increase of 4 cents/lb.
US June CGP contracts recently settled at 62.5 cents/lb, moving by a different amount than US June polymer-grade propylene (PGP) contracts for the first time since March 2011.
The 2 cent/lb nomination, coupled with a July PGP nomination for an increase of 1 cent/lb, would put PGP and CGP contracts at their typical gap of 1.5 cents/lb.
The 4 cent/lb nomination would require a 3 cent/lb increase on July PGP for the typical gap to be restored.
Sources said that demand for CGP has been softer than PGP, which fuelled the smaller increase in June contracts.
Buyers said that the 2 cent/lb increase is more likely, but that the demand gap is still tilting in PGP’s favor.
US propylene contracts typically settle toward the start of the month.
Major US propylene producers include Chevron Phillips Chemical, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.77)
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