US Aug propylene initially settles down 3.5 cents/lb

HOUSTON (ICIS)–US August propylene contracts started settling lower on Tuesday, remaining at their lowest in more than six years.

August contracts for polymer-grade propylene (PGP) settled down 3.5 cents/lb ($77/tonne) at 33.0 cents/lb, while chemical-grade propylene (CGP) settled at 31.5 cents/lb.

This remains the lowest settlement since the May 2009 PGP contract was done at 31.5 cents/lb and CGP was done at 30.0 cents/lb.

Market sources said continued long supply and high inventory levels coupled with declining crude oil and feedstock costs to outweigh strong demand, leading to the decline.