US May propylene initially settles down on long supply

John Dietrich

20-May-2015

US May propylene initially settles down on long supplyHOUSTON (ICIS)–US May propylene contracts reached an initial settlement on Wednesday at a drop, tracking long supply.

Sources said May polymer-grade propylene (PGP) and chemical-grade propylene (CGP) were settling down 1 cent/lb ($22/tonne) from April contracts.

This would put May PGP at 42.0 cents/lb and May CGP at 40.5 cents/lb.

Sources said that with inventory levels near record highs and production still strong, the market is very long.

Even with steady-to-strong demand, sources said it is unlikely that supply will shorten in the summer.

US May propylene contracts were initially nominated for a decline of 0.5 cent/lb and 1.0 cent/lb by two separate producers.

Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell and Shell Chemical.

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

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