HOUSTON (ICIS)–US September propylene nominations were heard at increases of 7 cents/lb ($154/tonne) and 8 cents/lb ($176/tonne), sources said on Friday.
August contracts settled at 37.0 cents/lb for polymer-grade propylene (PGP) and 35.5 cents/lb for chemical-grade propylene (CGP).
US propylene prices have been rising on higher spot prices for PGP, which have climbed 8-9 cents/lb since the end of July.
That increase has mostly been tied to tighter supply from crackers, propane dehydrogenation (PDH) units and increased exports, drawing down inventories.
The spike in PGP has also allowed upstream refinery-grade propylene (RGP) prices to gain 10-11 cents/lb in the same period.
Further, RGP is set to continue tightening because several refinery production issues in mid-August drew down inventories.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, Flint Hills Resources and Shell Chemical.
Major US buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
Larry Terry contributed to this story
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