Total Petrochemicals plans to increase its polypropylene prices in the US by 3 cents/lb ($66/mt) for September, the company said in a letter to customers obtained by Platts Tuesday.
The increase would be in addition to all previous price increase announcements, Total said in the letter, which was dated August 29.
Total has the capacity to produce 1.224 million mt/year of polypropylene in the US, according to Platts data.
Last week, LyondellBasell subsidiaries Equistar Chemicals and Mexico City-based Basell Poliolefinas said they would increase their September polypropylene prices by the change in polymer-grade propylene pricing for the month.
A nomination by a major propylene producer earlier this week called for a 1-cent/lb ($22/mt) increase from the August PGP price of 72.50 cents/lb.
With spot PGP starting the week in a range of 69-71 cents/lb for September delivery, pricing expectations in the PP market are that there will be rollover settlement for PGP, which would likely also mean stable pricing for PP for the month, sources said.
Polypropylene contracts closely follow PGP pricing. A majority of contracts remain on monomer-plus formulas, with the premium, or the “plus,” at 8-12 cents/lb over PGP CPs, sources say.
– Platts.com
