US propylene contracts for December have fully settled down 2 cents at 56 cents/lb for polymer grade and 54.50 cents/lb for chemical grade, market sources said Tuesday.
Initial settlements calling for a 2-cent/lb decrease for PGP were first reported by Platts last week.
The last time propylene contracts dipped into the mid-50s cents/lb was June and July 2010, when PGP was at 55.50 cents/lb and CGP was at 54 cents/lb.
Contracts previously settled for November at 58 cents/lb for PGP and 56.50 cents/lb for CGP.
The decrease was consistent with market expectations that called for a reduction in the range of 1-4 cents/lb based on recent spot levels that showed oversupply and overall demand weakness in the markets.
Spot PGP was last assessed Friday at 54.75-55.25 cents/lb, while CGP was at 51.75-52.25 cents/lb delivered USG. Spot refinery-grade propylene was last assessed Monday at 39.50-40 cents/lb, good for an 18-month low.
The decrease also frustrated major producers' calls for a rollover settlement or even an increase, as ExxonMobil was heard nominating late last month.
