August US propylene contracts appear set to climb 2 cents/lb

Chemical News: August US propylene contracts appear set to climb 2 cents/lb

https://www.chemnet.com Aug 05,2010
August US propylene contracts appeared set to rise as sources this week reported a possible settlement of plus 2 cents/lb. One seller reported initial
settlements with two buyers at plus two cents while another buyer concurred
that a two cents increase was likely.

If sellers are successful in pushing through a price hike at that level,August PGP contracts would be at 57.50 cents/lb while August CGP would be at 56 cents/lb. Still sources noted that negotiations were ongoing and some buyers were looking for a rollover from July.

Sellers could see some support from higher spot as August PGP was last heard traded at 56 cents/lb MtB pipe, a penny above the July contract. As well, sources noted that steam cracker operators in the US continued to show a preference for light feeds, which constrained propylene output and kept the
market snug.

Supply could improve as Petrologistics was expected to begin feeding its new 1.2 billion lbs/year propylene plant in Houston, Texas at the end of August. The company was expected to be producing on spec material in September, sources said.

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