European chemical-grade propylene spot prices fell below April's contract price on Friday, which signified length had begun to develop in the European market.
S&P Global Platts assessed chemical-grade propylene for delivery in April at Eur845/mt on Friday, a 4% discount to the April CP, which was down from Eur865/mt a week earlier, at parity with the March CP.
"I see all propylene products becoming balanced and some of them even long. There is a real excess of RGP [refinery grade propylene] in the market that impacts the consumers that can take both grades [RGP and CGP]," a producer source said Friday.
RGP's length has grown following the return of a number of European refineries from planned maintenance.
Those heard purchasing RGP last week were either doing so to produce chemicals that did not require the quality of propylene given on CGP and PGP grades or were in possession of a splitter.
A splitter is responsible for purifying propylene, taking in lower-purity products such as refinery- and chemical-grade propylene to produce higher-purity grades.
Demand for propylene was subdued last week, with a single trade reported to Platts on Friday.
On Friday 1,700 mt of CGP traded at Eur780/mt or the April CP minus 11.4% CIF Rotterdam for delivery in April. Both buyer and seller confirmed the trade.
The trade gives an indication of a falling market but sources said they felt the price was not repeatable Friday.
