US July PP contracts settle up 0.5 cent/lb on feedstock propylene

26 July 2017 22:54 Source:ICIS News

source: Nils Jorgensen/REX/ShutterstockHOUSTON (ICIS)--US July polypropylene (PP) contracts settled up 0.5 cent/lb this week, tracking feedstock propylene, sources said on Wednesday.

The PP settlement marked the fourth increase for that polymer this year. Polymer-grade propylene (PGP) had settled at 0.5 cent/lb increase last week.

The July increase puts copolymer film at 59.0-62.0 cents/lb ($1,301-1,367/tonne), compared to 58.5-61.5 cents/lb previously.

The July settlement represented the 12th month in a row that PP has followed the feedstock price movement.

That string could end in August, as some producers have announced increases in efforts to expand margins.

INEOS, for example, issued an initiative on 18 July, stating that the producer will raise the price of PP resin by 3 cents/lb over and above the change in price of feedstock propylene between the months of July and August.

Braskem announced a hike in late June for 5 cents/lb.

A distributor noted that only a few producers had issued such hikes, though.

“Those increases are not market-wide,” a source said on Wednesday.

Major PP producers in North America include Braskem, ExxonMobil, Flint Hills Resources, Formosa Plastics, INEOS, LyondellBasell, Phillips 66, Pinnacle Polymers and Total Petrochemicals.

By Lane Kelley