HOUSTON (ICIS)–US October propylene contracts were nominated at a rollover, sources said on Thursday, in line with market expectations.
Sources said two US producers have separately nominated 30.0 cents/lb ($661/tonne) for October polymer-grade propylene (PGP) and 28.5 cents/lb for chemical-grade propylene (CGP).
The September settlements were the lowest since April 2009, when PGP was at 29.0 cents/lb and CGP at 27.5 cents/lb.
US spot propylene prices have stabilisied in late September and early October, with market players saying supply should start to tighten as crackers shift more feedslate focus toward ethane.
Additionally, refinery-grade propylene (RGP) spot prices are also expected to firm throughout October on less production as gasoline demand slackens on seasonal factors.
US October PGP was recently traded at 27.625 cents/lb, up from the last reported September trade at 27.000 cents/lb.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, LyondellBasell and Shell Chemical.
Major buyers include Ascend Performance Materials, Braskem, Dow Chemical, INEOS and Total.