The US December propylene contract was confirmed by a majority of the market at an 8-cent decline from the November contract prices, trade participants said on Wednesday.
The 8-cent decline was in line with market expectations targeting a 8-10 cent decline, and took polymer-grade propylene contracts down to 42 cents/lb and chemical-grade contracts down to 40.50 cents/lb.
Initial contract settlements emerged late last week at 8-cent declines, but trade sources said one producer was holding out and pushing for a decline of 10 cents. The overall decline was driven by a continued build in domestic stockpiles, lower feeedstock propane costs and falling spot prices.
Prompt ethylene spot prices have fallen from a high of 47.50 cents/lb FD USG at the start of November to a yearly low of 36.75 cents/lb FD USG on December 11, according to S&P Global Platts data.
