Producers seek August rollover
US mono propylene glycol (MPG) producers are attempting to roll over prices for August after a rollover attempt in July failed.
After prices came off about a nickel in late-June activity, they weakened another 5-7 cents/lb in July. That prompted producers to attempt a rollover again in August. The strength of the propylene contract is expected to dominate MPG prices until supply-and-demand issues began to regain importance.
This summer has been an off-season for MPG in the absence of an active construction sector and as the feeble economy limps along. Remodelling projects that require MPG-based materials picked up earlier in the year but are still sluggish, and manufacturing has been moribund.
Demand is expected to begin rising by September as blenders start to prepare antifreeze for the winter.
Supply was not expected to be significantly affected by scheduled third-quarter turnarounds, a producer said.
Feedstocks
A US producer has nominated the August PGP contract at an increase of 3 cents/lb from the July contract price of 78 cents/lb.
Propylene spot business was a mixed bag, with refinery-grade propylene (RGP) spot prices slipping as polymer-grade propylene (PGP) numbers continued to rise.
RGP traded at 66 cents/lb and 68 cents/lb for July delivery, although the former deal was understood to be for a small quantity of propylene and was not included in the assessed range. The
RGP bid/offer range at the end of the week was 68-71 cents/lb, with August offered at 65 cents/lb.
PGP traded at 78 cents/lb and 79 cents/lb for August delivery, and at 78 cents/lb for September delivery.
In the energy complex, the crude oil close on the NYMEX futures contract slipped under $96/bbl on 29 July on dismal economic data.
The table below shows the evolution of crude oil prices in the last four weeks.
NYMEX Front-Month Crude Oil Contract
| Date | 8 Jul | 15 Jul | 22 Jul | 29 Jul |
| (US$/bbl) | 96.20 | 97.24 | 99.87 | 95.70 |
($1 = €0.70)
This week on ICIS ( www.icis.com ):
30/07/2011 00:59 Europe PO July contract prices fall on lower feedestock costs
29/07/2011 23:51 US August polymer-grade propylene nominated up 3 cents/lb
29/07/2011 14:30 Europe August propylene fully settles after second number emerges
28/07/2011 23:02 Braskem PP purchase will not solve US market woes – sources
28/07/2011 18:14 Third producer, consumer follow €15/t Europe August propylene fall
