US propylene contract prices for January are fully settled 12 cents lower, with chemical-grade propylene at 48 cents/lb and polymer-grade propylene closing at 49.5 cents/lb and sources said Tuesday.
The drop is 4 cents below the initial settlement, an 8 cents/lb decrease, heard Thursday.
The settlement puts contract prices at their lowest level since November 2009’s prices at same levels of 49.5 cents/lb and 48 cents/lb for PGP and CGP, respectively.
Market expectations in the past week called for a more than 10-cent drop in US contract prices for PGP and CGP.
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Initial nominations for December contracts last saw a call for a 8-cent decrease for PGP and CGP contract prices, sources said, adding that ExxonMobil Chemical made the initial nominations.
Market sources talked of weakened propylene demand, ample supply and a drop in ethylene and overall oil prices as the main reasons for the decrease in PGP values.
In spot markets Tuesday, January and February PGP were heard offered at 47.5 cents/lb Mont Belvieu pipeline basis. February was heard traded Monday at 46.25 cents/lb MtB-pipe. Spot PGP was last heard traded at that level in late November 2009. RGP was heard bid at 34.75 cents/lb MtB-pipe for January deliveries and at 32 cents/lb for January and February deliveries via railcar.
Platts assessed US spot PGP on Friday at 46.75-47.25 cents/lb delivered, while RGP was last assessed on Monday at 34.75-35.25 cents/lb delivered.
-Plats.com
