16 December 2008 21:49 [Source: ICIS news]
(Adds background, detail)
HOUSTON (ICIS news)--US propylene contracts for December were fully settled at a 10 cent/lb ($220/tonne or €160/tonne) drop from November, market sources said on Tuesday.
The settlement puts polymer-grade propylene (PGP) at 20 cents/lb and chemical-grade propylene (CGP) at 18.50 cents/lb, according to global chemical market intelligence service ICIS pricing.
The reduction stemmed from continued weak demand and lower feedstock prices.
US propylene contracts have dropped by more than 75% since the summer when contracts peaked on the back of soaring energy prices.
PGP hit an all-time high of 85.00 cents/lb in July, while CGP contracts settled at a record 83.50 cents/lb.
An even sharper drop has taken place on the spot side.
Refinery-grade propylene (RGP) last traded on 11 December at 13 cents/lb after peaking at nearly 80 cents/lb in mid-July.
An RGP offer was heard on Tuesday at 14 cents/lb with no bids.
Equistar, ExxonMobil, Chevron Phillips Chemical, Shell Chemical and Enterprise Products are among the major US producers of PGP and CGP.
Total, Solutia, Dow Chemical, Rohm and Haas and INEOS are among the main buyers.
($1 = €0.73)
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