The initial settlement for US May contract prices for chemical-grade propylene and for polymer-grade propylene called for rollovers at 31 cents/lb and 32.5 cents/lb, respectively, sources said Friday.
The settlements, if accepted marketwide, would be below the latest nomination of a 0.5-cent/lb increase and would snap a streak of three back-to-back increases.
In market activity Friday, May was offered at 30.75 cents/lb Mont Belvieu-pipeline basis.
US polymer-grade propylene was assessed Friday at 30-30.5 cents/lb FD USG, steady day on day for both May and June deliveries.
The contract price is generally 2-3 cents above spot PGP prices at the end of the prior month and the beginning of the new month.
Refinery-grade propylene pricing is also considered in the formula, because it is a large source of PGP. Refinery-grade product was steady Friday at 19.25-19.75 cents/lb delivered.
US propylene contracts are settled on a monthly basis between major producers and buyers.
The process includes price nominations by producers and subsequent negotiations with customers.
