Initial nominations for US July propylene contracts were heard nominated up three cents/lb from at least one producer, sources said Tuesday.
Market participants said that ExxonMobil had nominated its July propylene contract up three cents/lb, but confirmation from the company was not immediately available. No other producer nominations were heard at time of publication, though sources said they expected similar announcements.
The June propylene contract settled at 52 cents/lb ($1,146/mt) for polymer-grade material (PGP) and 50.50 cents/lb ($1,113/mt) for chemical grade material (CGP).
Buyers and traders said they expected that the July contract would likely settle flat to down two cents, pointing to spot refinery grade propylene values hovering near 37-38 cents/lb for much of June. Spot RGP values Tuesday were mostly stable with June heard offered at 38.50 cents/lb MtB pipe while buyers were absent.
Conversely, sellers seemed to anticipate an increase in the July contract, citing healthy downstream polypropylene demand and PGP values which were near 52 cents/lb.
Propylene contracts in the US saw steep declines in recent months with May PGP contracts shedding 10 cents/lb ($220/mt) to fall to 67.50 cents/lb ($1,488/mt) and then June settling down 15.50 cents/lb ($342/mt) to two-and-a-half-year lows, with PGP at 52 cents/lb ($1,146/mt) and CGP at 50.50 cents/lb ($1,113/mt).
