30 December 2013 21:25 [Source: ICIS news]
HOUSTON (ICIS)--US January polymer-grade propylene (PGP) contracts were initially nominated for an 11% increase, sources said on Monday.
The nominated increase of 7.5 cents/lb ($163/tonne, €121/tonne) would put January PGP contracts at 78.0 cents/lb.
If PGP and chemical-grade propylene (CGP) contracts settled by the same movement, January CGP contracts would be at 76.5 cents/lb.
The increase was higher than expected but in-line with predictions that sellers would be aggressive following a spike in spot PGP prices to end the year.
The surge in spot PGP was largely based on improved demand from pre-buying as well as continued tight supply.
Sources said they expect a similar nomination for January CGP contracts when one is announced.
Major US propylene producers include Chevron Phillips, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.73)
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