25 April 2014 17:13 [Source: ICIS news]
HOUSTON (ICIS)--A US producer nominated a rollover for its May propylene contracts, sources said on Friday.
A rollover would put US May polymer-grade propylene (PGP) contracts at 71.0 cents/lb ($1,565/tonne) and chemical-grade propylene (CGP) contracts at 69.5 cents/lb.
Sources said the rollover was not surprising, as spot PGP has recently stabilised on balanced inventories and a continued lag in demand from the construction market.
US propylene contracts often settle 2-3 cents/lb above recent spot PGP levels, and the most recent front-month PGP trades have been done at 68.5 cents/lb.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
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