Final settlements for US propylene contract prices for September called for a rollover from August, sources said Monday.
Polymer-grade propylene contracts settled at 72.5 cents/lb delivered and chemical-grade propylene at 71 cents/lb delivered, flat to August contract prices, multiple sources said. The settlement process started Wednesday, sources added.
The final settlement is in line with a nomination by Shell Chemical that called for a rollover earlier in the month, sources said. ExxonMobil Chemical was heard nominating September at a 1-cent/lb increase in late August, sources said.
The price is at the higher end of the expectations of market participants, who said the September contract price could decrease as much as 1 cent/lb.
One market source said the flat settlement was anticipated, as the 5 cents/lb increase seen in August drove some of the demand out of the market and polypropylene demand declined during the month.
In the spot market Monday, spot PGP for October delivery was heard bid at 68 cents/lb Mont Belvieu-pipeline basis. October was last heard traded twice Friday at 69.375 cents/lb MtB-pipe, while September was heard traded Thursday at 69.5 cents/lb MtB-pipe.
Spot PGP was assessed Friday at 69.25-69.75 cents/lb delivered, while spot CGP was assessed at 66.25-66.75 cents/lb delivered.
