US polypropylene contracts could see a stable-to-down settlement for April, then rebound as early as May, market sources said Monday.
A nomination for polymer-grade propylene contracts calling for a rollover of March pricing was giving PP market participants confidence that prices could remain flat or decrease slightly, sources said on the sidelines of the American Fuel and Petrochemical Manufacturers' International Petrochemical Conference in San Antonio.
Citing stable to weaker spot PGP pricing, three sources said they expected PGP contracts to settle flat to lower, given adequate supply against downstream demand that has been slow to pick up in the first quarter.
A source with a major US producer said he was beginning to see an uptick in demand and a tightening market that some sources attributed to lower running rates by PP makers.
Polypropylene contracts for March fell 1.5 cents to 82-83 cents/lb $1,808-$1,830/mt) delivered-railcar basis for homopolymer and at 83-84 cents/lb ($1,830-$1,852/mt) delivered-railcar for fiber grade, as assessed by Platts.
The downward move followed PGP contracts, which also fell 1.5 cents ($33/mt) for March to 72 cents/lb ($1,587/mt) on a marketwide settlement. Spot PGP was last assessed Friday at 68.75 cent/lb delivered, down a quarter-cent week on week, its lowest level since November 27.
