An initial price nomination for the August US polymer-grade propylene contract calls for a rollover from July, market sources said Friday.
PGP contracts last settled for July at 52 cents/lb ($1,146/mt), itself a rollover from June.
The nomination, which sources said came from major producer ExxonMobil Chemical, fell within market expectations that have centered around a flat-to-down-2 cents/lb range for the upcoming month.
No other nominations were heard by time of publication and confirmation from ExxonMobil was unavailable as the company's policy is not to comment on pricing or day-to-day operations.
US propylene contracts are settled on a monthly basis between major producers and buyers. The process includes price nominations by producers and subsequent negotiations with customers.
Spot PGP has hovered below the 50-cent/lb mark for much of July, last assessed July 20 at 49-49.50 cents/lb FD USG and last heard offered Friday morning at 51 cents/lb MtB pipe basis against no bids.
The propylene market has seen steady demand from polypropylene over the past two months but not from other downstream markets, leading to general weakness in pricing and length in supply, particularly refinery-grade propylene, sources said.
"We still think [PGP] could be down 2 [cents/lb]," a veteran olefins trader said, citing current spot pricing.
