Initial nominations for February US chemical-grade and polymer-grade propylene contract prices are calling for 1-cent decreases to 29.5 cents/lb and 31 cents/lb, respectively, multiple sources said Tuesday.

The nomination also called for a rollover in January pricing, sources added.

ExxonMobil Chemical is the only producer to announce propylene contract price nominations, sources said. Producer confirmation was unavailable.

The nominations stirs up on-going market settlements that in early morning called for a 0.5 cent/lb drop for January's PGP at 31.5 cents/lb MtB-pipe.

Sources said the recent drop in crude oil prices were not represented in spot polymer-grade and refinery-grade prices and were holding out for lower numbers in January, which in turn resulted in unsettled contracts this late in the month.

US propylene contract prices settle on a monthly basis between major producers and buyers. The process includes price nominations by producers and subsequent negotiations with customers. The negotiations are generally concluded by the end of the third week in the month, and are withing 2-3 cents/lb above the current spot PGP price and within 10-12 cents/lb of the current RGP price.

US propylene contract prices for January started to settle 0.5 cent lower, with polymer-grade propylene closing at 31.5 cents/lb and chemical-grade propylene at 30 cents/lb, sources said Tuesday morning.

The decrease was within market expectations, but below the initial nomination of a 0.5 cent/lb increase heard in December.

If the settlement is accepted market-wide, it would mark the first decrease since a 3-cents/lb drop in August, Platts data show.

http://www.platts.com/latest-news/petrochemicals/houston/initial-february-us-propylene-nomination-calls-21829151