US propylene contract prices for October have settled up 4 cents, with polymer-grade propylene closing at 76.50 cents/lb and chemical-grade propylene at 75 cents/lb, sources said Friday.
As previously reported, settlements began to start on Thursday, with sources indicating the settlement would be the one that was reached market-wide on Friday.
Market expectations early in the week called for 5-cent increases in US contract prices for PGP and CGP. Discussions of a settlement picked up Wednesday, with sources citing an initial unconfirmed agreement at an increase of 4.50 cents/lb.
Initial nominations for October contracts in late September saw a call for a 5-cent increase for PGP and CGP contract prices, sources said, adding that ExxonMobil Chemical made the initial nominations.
Two days later, Shell Chemicals nominated CGP prices at a 3-cent increase, sources said. A renomination for an 8-cent increase in both grades then occurred, market sources said, who identified the producer as ExxonMobil Chemical.
In spot markets Friday, PGP and CGP were last assessed at 73.50-74 cents/lb delivered and 73-73.50 cents/lb delivered, respectively. On Friday, a trade for October PGP was heard at 72.50 cents/lb Mont Belvieu pipe basis.
– Platts.com
