HOUSTON-US propylene contracts for February resolved level, market resources claimed on Wednesday, verifying that a hold-out manufacturer had consented to the rollover.
The negotiation maintained polymer grade propylene (PGP) at 77.50 cents/lb ($1,709/ tonne, EUR1,265/ tonne).
2 United States producers had actually originally nominated increases of 3.00 cents/lb for PGP, but a decrease in place costs in the second half of January threatened the initiatives.
Place PGP for February shipment traded at 75.00 cents/lb in the last week of January, down from 75.50 cents/lb 2 weeks earlier.
iro oil drilling chemical co., ltd. was supplied on Wednesday at 73.00 cents/lb without any bids.
Chemical quality propylene (CGP) also worked out level at 74.00 cents/lb, in spite of two suggested rises of 5.00 cents/lb, yet the market remained split due to the fact that a third producer held its agreements at 70.00 cents/lb as part of a two-month settlement agreed upon in January.
The rollover for United States propylene in February complied with a significant rise in January, when PGP agreements climbed by 17.00 cents/lb and also CGP by 11.00 as well as 15.00 cents/lb.
The January surge stemmed from limited supply and also greater spot rates, including a 42% spike in refinery grade propylene (RGP) rates in December.
RGP is a key element in figuring out propylene contract costs because the product is made use of as a feedstock for higher-purity propylene as well as make up around 60% of the US monomer market.
RGP for February traded at 62.00-65.00 cents/lb this week, down from deals done at 72.00-72.25 cents/lb in the first week of the month.
The drop resulted from weaker demand, a market individual said, indicating that the increase in propylene agreements in January had valued PGP out of the marketplace.
The conditioning in RGP likewise indicated a likely decline for propylene in March, consisting of price quotes that contracts can visit around 10.00 cents/lb, a market resource said.
Significant United States producers of PGP and CGP include Chevron Phillips Chemical, Venture Products, ExxonMobil, LyondellBasell, Petrologistics and Covering Chemical.
The primary purchasers include Dow Chemical, INEOS, Ascend Efficiency Products and Overall.
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