08 May 2012 17:11 [Source: ICIS news]
Correction: In the ICIS news story headlined "US May propylene contracts settling down 10 cents/lb" dated 8 May 2012, please read in the second paragraph …puts polymer-grade propylene (PGP) in May at 67.50 cents/lb… instead of … 66.50 cents/lb…. A corrected story follows.
HOUSTON (ICIS)--US propylene contracts for May were settling down by 10 cents/lb ($220/tonne, €169/tonne), market sources said on Tuesday, pressured by weaker demand and softer energy prices in recent days.
The 13% reduction puts polymer-grade propylene (PGP) in May at 67.50 cents/lb, while bringing chemical-grade propylene (CGP) contracts down to 66.00 cents/lb.
A full-market settlement at those levels was yet to be reached, sources said.
US propylene contracts usually settle at the beginning of the month being negotiated.
US producers had originally nominated a rollover and a 3 cent/lb drop for May, but sources were predicting a 5-10 cent/lb reduction based on softer demand and lower spot prices in recent weeks.
The contract drop in May is the first for the US propylene market in 2012.
The monthly contract settled flat in April and January, but rose by around 40% in between with increases in both February and March.
($1 = €0.77)
Follow William on Twitter
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
Asian Chemical Connections