08 June 2012 17:24 [Source: ICIS news]
MEDELLIN, Colombia (ICIS)--US monopropylene glycol (MPG) contract prices for June and July are projected to decline as plummeting feedstock propylene values push prices lower, market players said on Friday.
US polymer-grade propylene (PGP) contracts for June fell by 15.50 cents/lb ($342/tonne, €270/tonne) from May to hit a 30-month low.
June PGP contracts settled at 52 cents/lb, a drop of roughly 23% from May and the lowest level since 49.50 cents/lb in November 2009.
The reduction, which put chemical-grade propylene (CGP) at 50.50 cents/lb, was the second in as many months as the US contract shed 10 cents/lb in May.
US propylene contracts had been widely expected to fall in June after spot prices cratered in recent weeks.
Refinery-grade propylene (RGP) for June traded at 36 cents/lb, dropping by 40% from a month earlier and its lowest level since July 2009.
Industrial-grade monopropylene glycol (PGI) was assessed at 87-93 cents/lb for May contract pricing, according to ICIS. June contract pricing is projected to decline by 6 cents/lb, but has not been assessed pending further market input.
Demand for PG is generally slow this time of year, but market players expect it to pick up in less than 30 days as recreational vehicle (RV) antifreeze and other coolant buyers will start ordering product ahead of the busy summer driving season.
Additional reporting by William Lemos
($1 = €0.79)
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