US PP prices dip another 2 cents/lb for May contracts

26 May 2005 22:00  [Source: ICIS news]

HOUSTON (CNI)--US polypropylene (PP) prices have fallen as much as another 2 cents/pound ($44/tonne) for May contracts, market sources confirmed Thursday.

 

The decline in off-list prices combined with a 3-4 cents/pound supplier discount offered earlier in the month, according to market participants. The two consecutive moves have resulted in discounts totaling 5-6 cents/pound for the month.

 

Secondary market values also remain under pressure. Spot prices shed another 1-2 cents/pound this week, pushing some homopolymer grades toward the 40 cents/pound level. Earlier in the month, market participants reported domestic spot prices hovering closer to the 50 cent/pound mark.

 

The off-list price cuts largely mirror the record breaking 6-8 cents/pound slide in May propylene prices, industry insiders noted. Persistently abundant inventories, mostly flat domestic demand and sluggish export interest are contributing to recent US resin market erosion.

By: Beth Daniel
+1 713 525 2653

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