US July propylene contracts initially settle at mixed movements

17 July 2013 16:42  [Source: ICIS news]

HOUSTON (ICIS)--US July propylene contracts initially settled at mixed deltas, sources confirmed on Wednesday, putting their gap back at typical levels.

Buyers confirmed that US polymer-grade propylene (PGP) contracts settled at a rollover while US chemical-grade propylene (CGP) contracts gained 1 cent/lb ($22/tonne, €17/tonne).

The July initial settlements put PGP at 65 cents/lb and CGP at 63.5 cents/lb.

This restores the premium of PGP to CGP to 1.5 cents/lb, its typical level. June contracts saw PGP increase by 3 cents/lb and CGP by 2 cents/lb, widening the gap for the first time since March 2011.

Sources said the higher June increase for PGP was mostly fuelled by stronger demand compared to CGP.

Nominations for July propylene contracts were for a 1 cent/lb increase in PGP and a 2 or 4 cent/lb increase in CGP.

However, demand has softened for propylene, leading to a drop in spot prices in the past week.

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 = €0.76)


By: John Dietrich
713-525-2600



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