US April propylene contracts settled lower compared to the previous month, dragged by a collapse in oil prices and mured demand amid the coronavirus pandemic, market sources told SSESSMENTS.COM.
April polymer-grade propylene (PGP) contracts fell 2 cents/pound to 26.0 cents/pound ($573/tonne) on delivered (DEL) basis, while contract prices for chemical-grade propylene (CGP) also settled 2 cents/pound lower at 24.5 cents/pound DEL. Contract prices have fallen for five straight months to hit their lowest since January 2009.
The decline in contract prices contrasts the recent uptrend in spot prices. Spot PGP rebounded in April to as high as 25.0 cents/pound, after dropping to its lowest in 11 years at 19.0 cents/pound. However, contract prices remain higher than spot levels.
