US propylene contract prices for November were nominated at a 4-cent/lb discount by one major producer, market sources said this week.
The nomination reiterated producers' stance that the price drop, while bound to happen, will be curtailed compared to October, when prices dropped 14 cents/lb.
A second initial nomination was heard at down-3.5 cents/lb, although confirmation was not available by time of publication.
Many propylene traders and buyers haved talked the expected decrease anywhere from 4-10 cents/lb or more, with some of the consensus that a 5- to 7-cent/lb drop for November is likely.
One veteran trader said a 4-cent/lb decrese nomination was a "good starting point."
The same trader said days earlier he believed the PGP contract could drop 6-8 cents/lb.
"A November PGP contract at 57 cents/lb looks pretty solid, down 7," he said then.
A source with another producer -- which has yet to nominate -- said he expected the extent of the drop to be closer to those initial nominations.
"I am in the down 4-6 [-cent/lb] camp," the producer source said.
US propylene contracts last settled for October down nearly 18% at 64 cents/lb for polymer-grade propylene and 62.50 cents/lb for chemical-grade propylene.
Some buyers and polypropylene market participants have aknowledged propylene's recent strengthening. November RGP was heard done this week at 48 cents/lb, 3 cents/lb above the previous deal for the week.
November PGP, meanwhile, was last heard traded this week at 57-58-cent/lb levels, up from the 54-cent/lb deals done two weeks ago.
Spot RGP was last assessed Thursday on either side of 48 cents/lb delivered Houston area.
