18 July 2013 17:02 [Source: ICIS news]
HOUSTON (ICIS)--US July propylene contracts settled at split deltas for the second consecutive month, buyers and sellers confirmed on Thursday.
Sources said that July polymer-grade propylene (PGP) contracts rolled over while chemical-grade propylene (CGP) contracts gained 1 cent/lb ($22/tonne, €17/tonne).
This puts July PGP contracts at 65.0 cents/lb and July CGP contracts at 63.5 cents/lb.
The settlements came in lower than the nominations from producers, which were for a 1 cent/lb increase in PGP and a 2 or 4 cent/lb increase in CGP.
Sources said the lower settlements were mostly driven by softer demand for propylene from the plastics markets.
Additionally, feedstock costs from refinery-grade propylene (RGP) had been steady to slightly softer in the 56-57 cent/lb range, while propane has been steady in the upper 80s cents/gal range.
US propylene contracts typically settle in the first half of the month for that month and are 2-3 cents/lb above recent spot trades.
July material most recently traded at 63.0 and 61.5 cents/lb, having not been done outside that range during the month.
Sources added that propylene supply has also been improving as only one major US cracker is down – Williams Olefins’ Geismar cracker in Louisiana.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.76)
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