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Propylene Producer Nominates Price Hike for February

12:01 PM MST | January 26, 2012 | Lindsey Bewley

A U.S. propylene producer has nominated a 22-cts/lb increase for February contracts, market players say. The nomination is a 40% premium to current propylene contracts of 56 cts/lb for polymer-grade propylene (PGP) and 54.5 cts/lb for chemical-grade propylene (CGP).    Market sources say an increase of about 10 cts- 5 cts/lb would be reasonable for February contracts given rising alkylation alternative values and the structural change to ethane as the favored feedstock. Cost pressures from steam crackers, metathesis economics and refinery-grade...

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