07 November 2011 23:04 [Source: ICIS news]
Ample supply and soft conditions were expected to persist throughout the fourth quarter and were said to be exerting downward pressure on IPA, with weaker feedstock chemical-grade propylene (CGP) as the primary cause.
The decline took contract prices to a new range of 75-77 cents/lb for most mid-volume customers, as assessed by ICIS, but additional near-term price weakness of 3-4 cents/lb was said to be likely.
Contract prices for much larger customers were confirmed in the low-to-mid-60s cent/lb range.
Contract values recently fell by 4 cents/lb during October on soft demand and more available supply.
Ongoing soft market conditions include seasonally soft demand and ample supply both domestically and from imports.
November propylene contracts were nominated at reductions of 3.50 and 4.00 cent/lb for November, with settlements expected later this week, sources said. The feedstock recently dropped by 14 cents/lb for October on excess inventory.
($1 = €0.73)
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