Market and product
US August polymer-grade propylene CP nominated at rollover
An initial price nomination for the August US polymer-grade propylenecontract calls for a rollover from July, market sources said Friday.
PGP contracts last settled for July at 52 cents/lb ($1,146/mt), itself arollover from June.
The nomination, which sources said came from major producer ExxonMobilChemical, fell within market expectations that have centered around aflat-to-down-2 cents/lb range for the upcoming month.
No other nominations were heard by time of publication and confirmationfrom ExxonMobil was unavailable as the company's policy is not to comment onpricing or day-to-day operations.
US propylene contracts are settled on a monthly basis between majorproducers and buyers. The process includes price nominations by producers andsubsequent negotiations with customers.
Spot PGP has hovered below the 50-cent/lb mark for much of July, lastassessed July 20 at 49-49.50 cents/lb FD USG and last heard offered Fridaymorning at 51 cents/lb MtB pipe basis against no bids.
The propylene market has seen steady demand from polypropylene over thepast two months but not from other downstream markets, leading to generalweakness in pricing and length in supply, particularly refinery-gradepropylene, sources said.
PGP contracts last settled for July at 52 cents/lb ($1,146/mt), itself arollover from June.
The nomination, which sources said came from major producer ExxonMobilChemical, fell within market expectations that have centered around aflat-to-down-2 cents/lb range for the upcoming month.
No other nominations were heard by time of publication and confirmationfrom ExxonMobil was unavailable as the company's policy is not to comment onpricing or day-to-day operations.
US propylene contracts are settled on a monthly basis between majorproducers and buyers. The process includes price nominations by producers andsubsequent negotiations with customers.
Spot PGP has hovered below the 50-cent/lb mark for much of July, lastassessed July 20 at 49-49.50 cents/lb FD USG and last heard offered Fridaymorning at 51 cents/lb MtB pipe basis against no bids.
The propylene market has seen steady demand from polypropylene over thepast two months but not from other downstream markets, leading to generalweakness in pricing and length in supply, particularly refinery-gradepropylene, sources said.
