US spot PGP starting to stabilise as market hits possible floor

26 June 2014 22:56 Source:ICIS News

HOUSTON (ICIS)--The US spot polymer-grade propylene (PGP) market has started to steady and could be rebounding slightly as the market reaches a floor.

US front-month June PGP was bid at 64.75 cents/lb ($1,427/tonne) and offered at 65.00 cents/lb late on Thursday, sources said.

Additionally, material traded twice at 64.75 cents/lb on 25 June, up from the previous reported trade at 64.50 cents/lb on 9 June.

The US spot propylene market had been trending lower since late January on weak demand and then on high inventories.

Although inventory levels remain high, they have started to slide slightly, allowing for some upward momentum in pricing.

Another factor keeping spot propylene from falling further has been a steady rise in global energy futures, including feedstocks naphtha, propane and butane.

Sources said that the rise in feedstock costs have counter-balanced continued long supplies, while demand has been increasing steadily since May.

By John Dietrich