08 March 2013 23:06 [Source: ICIS news]
HOUSTON (ICIS)--US March propylene contracts has reached a full settlement at a nearly 8% decrease, sources confirmed on Friday.
Buyers and sellers confirmed that March polymer-grade propylene (PGP) and chemical-grade propylene (CGP) contracts shed 6 cents/lb ($132/tonne, €100/tonne) from February levels.
This puts PGP contracts at 73.0 cents/lb and CGP contracts at 71.5 cents/lb.
The drop came after nominations from producers for decreases of 5 cents/lb and 6 cents/lb, tracking weaker spot prices.
US PGP spot prices have declined by 6.00-10.75 cents/lb in the past five weeks, tracking weaker demand from the downstream polypropylene (PP) market.
Sources said the decline in PP prices was driven partly by February’s high PGP settlement of 79 cents/lb, as well as strong inventories.
March PGP traded at 65.00 and 65.25 cents/lb on Friday, continuing the downtrend.
Typically, the US propylene contract settles at the beginning of the month for the same month.
Major US producers of PGP and CGP include Chevron Phillips Chemical, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.
($1 = €0.76)
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