US December propylene contracts have begun settling up 3 cents/lb, two producers confirmed late Thursday and early Friday.
The new polymer grade propylene CP was set to be 60.50 cents/lb while chemical grade contracts were headed to 59 cents/lb.
Initial December nominations were at plus 3 cents/lb by LyondellBasell and up 3.50 cents/lb by ExxonMobil.
The settlement came as no surprise given Thursday deals for polymer grade propylene at 65 cents/lb Mtb-pipe. A refinery grade propylene was also done the same day at 50 cents/lb Mtb-pipe, resulting in a 15-cent delta between RGP and PGP.
For the month of October, spot PGP averaged 55.375 cents/lb, according to Platts' data.
One reason for higher propylene was an unplanned outage at Petrologistics' 1.2 billion lb/year propylene plant at Houston, Texas. The company reportedly restarted late last week, but Petrologistics did not confirm the production information.
The unit went down early in November unexpectedly due to a problem with a heat boiler, market participants said. Following an investigation into the problem, the company anticipated the outage would be roughly three weeks and consequently declared force majeure.
The new polymer grade propylene CP was set to be 60.50 cents/lb while chemical grade contracts were headed to 59 cents/lb.
Initial December nominations were at plus 3 cents/lb by LyondellBasell and up 3.50 cents/lb by ExxonMobil.
The settlement came as no surprise given Thursday deals for polymer grade propylene at 65 cents/lb Mtb-pipe. A refinery grade propylene was also done the same day at 50 cents/lb Mtb-pipe, resulting in a 15-cent delta between RGP and PGP.
For the month of October, spot PGP averaged 55.375 cents/lb, according to Platts' data.
One reason for higher propylene was an unplanned outage at Petrologistics' 1.2 billion lb/year propylene plant at Houston, Texas. The company reportedly restarted late last week, but Petrologistics did not confirm the production information.
The unit went down early in November unexpectedly due to a problem with a heat boiler, market participants said. Following an investigation into the problem, the company anticipated the outage would be roughly three weeks and consequently declared force majeure.
