Market sources said Thursday that June propylene contracts were heard settling down 3 cents/lb Thursday, a steeper decrease than the one initially talked by market participants.
Earlier this week, sources said a 2 cents/lb decrease appeared likely, however the market-wide settlement could be lower since negotiations were still on-going.
The decrease, if accepted market-wide, would put chemical-grade propylene at 66 cents/lb ($1,444/mt) and polymer-grade propylene prices at 67.5 cents/lb ($1,488/mt). Contracts for both propylene grades would be at their lowest levels since November's prices of 65 cents/lb and 66.5 for CGP and PGP, respectively.
Confirmations from producers regarding the settlements were not available.
Initial nominations called for a half-cent decrease for both grades.
If the settlement is accepted market-wide, it would mark the fifth straight contract decrease.
Seasonally lower refinery-grade propylene demand and weak spot polypropylene and PGP prices continued to be cited as main factors behind the contract decrease.
Spot PGP was last assessed Friday at 65.5 cents/lb delivered -- itself at a six-month low, according to Platts data -- and heard offered Thursday at 66 cents/lb Mont Belvieu-pipeline basis for June delivery. Propylene was last heard traded Tuesday at 64.875 cents/lb MtB-pipe for July PGP delivery, while spot RGP was heard traded twice at 54 cents/lb MtB-pipe for June deliveries.
Spot RGP was last assessed at 54 cents/lb delivered on Wednesday, two days after reaching its lowest level in over a year on Monday, assessed at 53.25-53.75 cents/lb delivered, Platts data showed.
