09 May 2012 16:41 [Source: ICIS news]
HOUSTON (ICIS)--US propylene contracts for May fell by 10 cents/lb ($220/tonne, €169/tonne), market sources said on Wednesday, confirming initial settlements reached the previous day.
The 13% reduction put polymer-grade propylene (PGP) in May at 67.50 cents/lb, while bringing chemical-grade propylene (CGP) contracts down to 66.00 cents/lb.
US producers had originally nominated a rollover and a 3 cent/lb drop for May, but sources had predicted a 5-10 cent/lb reduction based on softer demand and a sharp drop in spot prices prior to the settlement.
US propylene contracts usually settle at the beginning of the month being negotiated.
The contract drop in May was 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 February and March.
($1 = €0.77)
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