Shell Chemical and Enterprise Products Partners have revised upward their price nominations for August US chemical-grade propylene and polymer-grade propylene contracts by 1.5 cents, resulting in an respective overall 5-cent/lb and 5.5-cent/lb increases from July, sources said Thursday.
The renomination by Shell Chemical would put its August CGP price at 69 cents/lb, while the Enterprise renomination would put the PGP price at 71 cents/lb, sources said.
ExxonMobil has revised upward its price nominations for August US CGP and PGP contracts by 2 cents, resulting in an overall 4-cent/lb increase from July, sources said on August 1.
Supply was heard tightening after Chevron Phillips Chemical declared force majeure on propylene after production issues at plants in Port Arthur and Cedar Bayou, Texas, according to one source. A 70% allocation of originally contracted propylene volumes will be available for August under the force majeure, two market sources said.
August refinery-grade propylene on Thursday was heard bid at 60 cents/lb Mont Belvieu pipeline basis and offered at 62 cents/lb Mont Belvieu pipeline basis.
August and September PGP were heard bid at 65 and 65.50 cents/lb Mont Belvieu pipeline basis, respectively, and offered at 68 and 70 cents/lb, respectively. August PGP was heard traded Thursday morning at 67 cents/lb MtB-pipe.
CGP contracts settled for July at 63.50 cents/lb, up 1 cent from June, while PGP contracts settled for July at 65 cents/lb, which was steady from June’s levels.
US propylene contracts are settled on a monthly basis between major producers and buyers. The process includes price nominations by producers and subsequent negotiations with customers.
Source: platts.com
