HOUSTON (ICIS)--Sources on Thursday said a US producer has nominated its July propylene contracts to roll over.
The nomination for a rollover, if accepted, would put July polymer-grade propylene (PGP) contracts at 67.5 cents/lb ($1,488/tonne) and July chemical-grade propylene (CGP) contracts at 66.0 cents/lb.
US front-month spot PGP most recently traded at 64.75 cents/lb, a slight increase from deals done in early June.
Given that US propylene contracts often settle 2-3 cents/lb higher than the most recent spot trades, this would put the July nomination in line with market expectations.
US propylene contracts have fallen every month since the January settlement, down a combined 7 cents/lb.
Major US propylene producers include Chevron Phillips, Enterprise Products, ExxonMobil, LyondellBasell and Shell Chemical.
Major buyers include Ascend Performance Materials, Dow Chemical, INEOS and Total.