Initial settlements for the November US polymer-grade propylene contracts have settled up 4 cents/lb ($88/mt) to 57 cents/lb ($1,256/mt), market participants said Wednesday.
The increase over the October price of 53 cents/lb fell within market expectations, with sources earlier this week projecting a hike of 2-5 cents/lb.
Initial nominations by producers were heard at 5-7 cents/lb. The 4 cents/lb increase was confirmed by a major producer, a buyer and several traders.
The increase was expected to boost chemical-grade propylene contracts by 4 cents/lb to 55.50 cents/lb ($1,233/mt), from 51.50 cents/lb in October.
Spot PGP was last heard traded Wednesday morning at 53 cents/lb Mont Belvieu-pipe basis for November delivery, down 2.5 cents/lb from Platts' Friday assessment of 55.25-55.75 cents/lb delivered. Subsequent offers were heard at 53.25 cents/lb for November or December delivery.
Platts last assessed spot CGP on Friday at 52.25-52.75 cents/lb delivered.
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.
