The US propylene market expected August contracts to rise about 2 cents/lb, one penny short of at least two producers' expectations, sources said Friday.
"Looks like 2 cents/lb might be possible," a trader said.
At least two major producers -- ExxonMobil and LyondellBasell -- each nominated increases of 3 cents/lb for polymer-grade propylene last week, sources said.
July PGP and chemical-grade propylene settled down 4 cents/lb each at 78 and 76.50 cents/lb, respectively.
The 3-cent/lb increase nominations were generally passed down to the downstream polypropylene market, with producers citing the relative strength of propylene and upcoming supply limitations as a result of refinery and cracker turnarounds in September and October.
Propylene prices remained relatively stable in July before seeing a slight rally beginning last week. Refinery-grade propylene was heard traded as high as 70 cents/lb for August this week. PGP was last heard transacted at the 79-cent/lb level, also for August.
Recent downward movement in the energy complex -- highlighted by Thursday's dive in crude and RBOB -- seemed to be having little effect on the likes of ethylene and propylene.
Spot RGP was last assessed Thursday on either side of 69.75 cents/lb, down just .25 cents/lb; ethylene was last assessed on either side of 63.625 cents/lb, also down just .25 cents/lb.
Prices were heard talked relatively stable despite slow trading Friday.
"We're not reacting to the selloff," a veteran trader said, explaining the relative lack of movement relative to energy. "Propylene is still strong."
