US March propylene falls 1.5 cents/lb on lower spot pricing

HOUSTON (ICIS)–US March propylene fully settled at a decline of 1.5 cents/lb ($33/tonne), tracking recent weakness in the spot market, sources confirmed on Wednesday.

Buyers and sellers confirmed the drop in contract pricing, putting polymer-grade propylene (PGP) at 72.0 cents/lb and chemical-grade propylene (CGP) at 70.5 cents/lb.

The decrease was in line with market expectations, as US March propylene contracts were initially nominated at a slight fall of 1 cent/lb.

Buyers had anticipated a drop of 2-3 cents/lb because of weaker PGP spot prices, which had hovered in the high 60s cent/lb for most of February.

However a slight rise in spot prices last week had tempered projections to a fall of 1 cents/lb, and PGP trades made early this week continued the upward trend.

Spot PGP prices often set the range of discussion for propylene contract prices, with contracts settling 2-3 cents/lb above recent spot transactions.

Major US propylene producers include Chevron Phillips Chemical, ExxonMobil, LyondellBasell, PetroLogistics and Shell Chemical.

Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.