US August PGP contracts reach initial settlement up 7.7%

12 August 2013 19:57  [Source: ICIS news]

HOUSTON (ICIS)—US August contract prices for polymer-grade propylene (PGP) reached an initial settlement up 7.7% from July, sources said on Monday.

Buyers and sellers confirmed initial settlements up 5 cents/lb ($110/tonne, €83/tonne), which would put August contracts at 70 cents/lb.

The increase would be in line with revised nominations from producers, which ended the previous week at up 4 cents/lb and up 5 cents/lb.

Spot PGP prices have been increasing recently, largely on higher feedstock costs and some supply tightness.

Sources said August contracts for chemical-grade propylene (CGP) have not reached any settlements.

PGP and CGP contracts typically move by the same amount in a month, but can settle at different levels.

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 = €0.75)

By: John Dietrich

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