Nomination for US October propylene CPs calls for a rollover: sources

Houston (Platts)–28 Sep 2015 549 pm EDT/2149 GMT

Initial nominations for October US polymer-grade and chemical-grade propylene contract prices are calling for rollovers at 30 cents/lb and 28.5 cents/lb, respectively, multiple sources said Monday.

ExxonMobil Chemical is the only producer that has announced propylene contract price nominations so far, sources said. Producer confirmation was unavailable Monday.

The nomination marks the fourth call for a rollover in four months — the June flat nomination resulted in a 2-cent drop, while July and August nominations each resulted in 3.5 cent/lb drops. September propylene was nominated at a 2-cent drop, which later resulted in a 3-cent contract decrease. US propylene contract prices for September settled mid-month at 30 cents/lb for PGP and at 28.5 cents/lb for CGP, both at their lowest since the 29 cents/lb for PGP and 27.5 cents/lb for CGP in April 2009. The dip also marked the seventh consecutive decrease in 2015.

US polymer-grade propylene was assessed Monday at 26.75-27.25 cents/lb FD USG for October deliveries, while November was assessed at 26.5-27 cents/lb FD USG.

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.

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