US polymer-grade propylene contracts for April were reportedly starting to settle down 10 cents at 63 cents/lb delivered, one major buyer and two trader sources said Monday.
Negotiations were not finalized and another major buyer reported pushing for a settlement closer to 61 cents/lb.
The price decrease is the second in as many months. March PGP contracts settled at 73 cents/lb delivered, a 6-cent drop from February.
The propylene spot market has continuously declined the last five weeks. PGP was last assessed Friday at 61.25-61.75 cents/lb FD USG, a 6.50-cent decrease from the March 1 assessment of 67.75-68.25 cents/lb FD USG.
On Monday, spot PGP was heard offered at 61.50 cents/lb Mont Belvieu-pipe basis.
Initial nominations for April PGP and CGP contracts were heard last week at a 7 cents/lb decrease, with market participants expecting a 8-10 cent/lb drop in contract settlement.
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.
