US July PP contracts roll over, tracking monomer settlement

HOUSTON (ICIS)–US polypropylene (PP) contracts for July were assessed at a rollover, tracking an equivalent movement in propylene contract prices.

US PP contracts are generally formula based and are set at polymer grade propylene (PGP) values plus an adder.

Demand is described as healthy, with no major demand destruction despite of the cumulative increase of 13 cents/lb ($287/tonne) on monomer contracts between May and June.

July propylene contracts settled at a rollover, while spot deals for PGP were above the contract settlement at 60.75-61 cents/lb.

Import prices continue at attractive levels, with offers for homopolymer PP at 68-69 cents/lb on a cost and freight (CFR) basis.

Supply remains relatively constrained in the US, particularly for impact copolymer grades, given ongoing plant issues at the impact copolymer line at Total’s 1.224m tonne/year plant in La Porte, Texas.

ICIS assessed July contracts for homopolymer PP injection at 78-82 cents/lb delivered in bulk, US while contracts block copolymer PP were assessed at 79-83 cents/lb with the same terms.

Major US PP producers include Braskem, ExxonMobil, Formosa, INEOS, LyondellBasell and Total Petrochemicals.

Photo of polypropylene (PP) bottle by PhotoAlto/REX/Shutterstock.