HOUSTON (ICIS)--Initial settlements for US June propylene contract prices are at a rollover from May, although the settlement is not yet marketwide, sources said on Tuesday.
If fully accepted, the settlement would keep June prices at May levels, with polymer-grade propylene (PGP) contract prices at 38.5 cents/lb ($849/tonne) and chemical-grade propylene (CGP) at 37.0 cents/lb.
While June negotiations had begun amid some uncertainty about the direction for contract prices, market sources had expected a smaller month-on-month change than in recent months.
A full settlement for June contracts is pending further confirmation from market participants.
US propylene contracts are typically settled in the middle of the month for the current month.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, Flint Hills Resources and Shell Chemical.
Major buyers include Arkema, Ascend Performance Materials, Braskem, Dow Chemical, INEOS, Oxea and Total.
Image: Propylene is the feedstock for polypropylene (PP), which is used to make bottle caps like the ones shown above. Source: Mood Board/REX/Shutterstock?xml:namespace>