06 May 2014 21:43 [Source: ICIS news]
HOUSTON (ICIS)--A second US producer has nominated a rollover for May propylene contracts, sources said on Tuesday.
The rollover nominations are expected to meet resistance, as spot prices in the polymer-grade propylene (PGP) market have slipped slightly.
US spot PGP most recently traded at 67.625 cents/lb ($1,491/tonne) on 1 May, a drop from deals done at 68.500 cents/lb in late-April.
The decline has continued on Tuesday, with bids and offers heard in the 66.00-67.75 cents/lb level.
US PGP contracts often settle 2-3 cents/lb above recent spot trading of PGP, which could put contracts at 69.75-70.75 cents/lb.
April PGP contracts settled at 71.0 cents/lb, while chemical-grade propylene (CGP) contracts settled at their typical 1.5 cent/lb discount at 69.5 cents/lb.
Sources said they expect the discount for CGP to PGP to remain steady at 1.5 cents/lb for May.
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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