US spot polymer-grade propylene prices fell 1.25 cents Thursday to hit their lowest level in more than three years, with market sources attributing the drop to downstream oversupply and weakening demand.
Spot PGP was assessed Thursday at 29.25 cents/lb FD USG and was last lower on March 4, 2016, when it was assessed at 28.75 cents/lb FD USG, according to S&P Global Platts data.
Sources said the weaker downstream polypropylene demand has contributed to an oversupply of propylene and consequently weaker pricing.
Spot PGP has fallen nearly 9% since November 27, according to Platts data.
Market expectations for December propylene contract settlements call for a drop of 3.5-4.5 cents/lb.
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