Initial US Nov propylene contracts up by 1 cent/lb

HOUSTON (ICIS)–US November propylene contracts have reached an initial settlement at an increase of 1 cent/lb, sources said on Wednesday, marking only the third time this year that prices have moved up.

The 1 cent/lb ($22/tonne) increase puts polymer-grade propylene (PGP) at 31.5 cents/lb and chemical-grade propylene (CGP) at 30.0 cents/lb.

November contracts were originally nominated at an increase of 1.5 cents/lb.

Still, an overall increase was expected, given that propylene supply has been tightening.

Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil and Shell Chemical.

Major buyers include Ascend Performance Materials, Braskem, Dow Chemical, INEOS and Total.

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