07 March 2013 21:13 [Source: ICIS news]
HOUSTON (ICIS)--US March propylene contracts started to settle at a nearly 8% decline, sources said on Thursday.
Buyers and traders said March propylene contracts have started to settle at a drop of 6 cents/lb ($132/tonne, €102/tonne) from February levels.
Producers nominated falls of 5 cents/lb and 6 cents/lb earlier in the month.
The fall comes as spot polymer-grade propylene (PGP) prices have dropped by 6.50-7.75 cents/lb in the past four weeks on weaker demand.
The settlement would put March PGP contracts at 73.0 cents/lb and March chemical-grade propylene (CGP) contracts at 71.5 cents/lb.
The US propylene contract is typically settled at the start of the month for the current month.
Major producers of CGP and PGP include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.77)
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