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US propylene producer changes May proposal to -1 cent/lb from -3

ICIS News : 3-May-13 22:19

HOUSTON (ICIS)--A US propylene producer that made an initial nomination for May contracts has revised its offer, sources said on Friday.

The producer, which initially nominated a decline of 3 cents/b ($66/tonne, 51/tonne) on Wednesday, has revised its offer to a decline of 1 cent/lb.

This new nomination matches the nomination from another producer in the market, which was heard on Thursday.

Sources said the revised nomination was driven by a spot trade for polymer-grade propylene (PGP) at 59.25 cents/lb late in the week.

The trade offered support for a May propylene contract at 61-62 cents/lb.

April PGP contracts settled at 63.0 cents/lb, while chemical-grade propylene (CGP) contracts settled at 61.5 cents/lb.

Major US producers of CGP and PGP include Chevron Phillips Chemical, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.

Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.

($1 = 0.77)

By John Dietrich

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