US propylene contract prices for September have reached a full settlement at a rollover, market sources said Thursday.
As first reported by Platts, propylene contracts began to settle Wednesday flat to August, with polymer grade at 70 cents/lb delivered and chemical grade at 68.50 cents/lb on a delivered basis, with sources at a major producer and a major buyer confirming.
The settlement fell within market expectations amid mostly stable pricing in the spot market, which heavily influences contract negotiations. The settlement was also congruent with a nomination by ExxonMobil Chemical calling for a rollover.
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.
In the spot market, spot PGP for September delivery was last heard talked Wednesday in a range of 65-67.75 cents/lb Mont Belvieu pipeline basis, with October offered Thursday at 67 cents/lb MtB pipe against no bids.
Refinery-grade propylene, which can be purified into higher-quality grades such as PGP, was bid Thursday at 59.25 cents/lb against no offers, sources said.
Spot RGP was last assessed Wednesday at 60.125-60.625 cents/lb delivered, while spot PGP was last assessed Friday at 67-67.50 cents/lb delivered.
