US May propylene contract price settlements fully settled at a 0.5 cent/lb ($11/mt) decrease compared with April's contract price, sources said Monday.
The decrease puts prices for chemical-grade propylene at 69 cents/lb and polymer-grade propylene at 70.5 cents/lb, which would be the lowest prices since December.
Two producer sources confirmed the settlement prices.
Initial nominations for both grades called for a rollover.
The settlement was within expectations of market participants, who had talked a decline of as much as 1 cent, and marks the fourth consecutive contract price decrease. Sources cited weak May and June refinery-grade and polymer-grade spot markets as the reason for the slide in CPs.
Spot PGP was last assessed Friday at 67.25-67.75 cents/lb delivered, and heard bid Monday at 60.5 cents/lb Mont Belvieu-pipeline basis and offered at 68.25-68.5 cents/lb Mont Belvieu-pipeline basis for May delivery.
May and June PGP were last heard traded Friday at 67.5 cents/lb Mont Belvieu-pipeline basis.
