US June propylene contract prices settled down 3 cents/lb ($66/mt) from May, sources said Friday.
The decrease puts prices for polymer-grade propylene at 67.5 cents/lb ($1,488/mt) and chemical-grade propylene at 66 cents/lb ($1,455/mt) the lowest prices since November which they were at 66.5 cents/lb and 65 cent/lb for PGP and CGP, respectively.
Initial nominations for both grades called for a 0.5-cent decrease.
Two producer sources confirmed the settlement prices.
Market sources earlier this week said a 2-cent/lb decrease appeared likely, but cautioned that the market settlement could be lower because negotiations were ongoing.
If the settlement is accepted by the market, it would mark the fifth straight month of lower contract prices.
Spot PGP was last assessed May 30 at 65.25-65.75 cents/lb delivered and was heard bid Friday at 63.5 cents/lb Mont Belvieu-pipeline basis and offered at 66 cents/lb Mont Belvieu-pipeline basis for June and July deliveries.
In related news, US producer PetroLogistics said it plans to declare a force majeure on propylene deliveries later this month.
While the company did not say when the force majeure would take effect, it said expects the work to begin this month and take five to seven days to complete.