US propylene producer seeks 2 cent/lb hike for Feb contract

06 February 2014 17:59  [Source: ICIS news]

HOUSTON (ICIS)--A US propylene producer has nominated a 2 cent/lb ($44/tonne) increase for its February contracts, sources said on Thursday.

The nomination would put polymer-grade propylene (PGP) at 76.5 cents/lb and chemical-grade propylene (CGP) at 75.0 cents/lb for February if fully accepted.

Another producer nominated a 1 cent/lb increase for its February contracts in late January.

Sources said they expect a decline of 1-2 cents/lb for February contracts based on a recent slide in spot propylene prices.

One buyer said the increases for nominations are likely efforts by producers to hold pricing steady rather than allowing for a decrease.

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.

By: John Dietrich

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