US June propylene contracts settled 5 cents/pound ($110/ton) higher compared to the previous month, amid rising spot prices and production issues, market sources told SSESSMENTS.COM. June polymer-grade propylene (PGP) contracts stood at 26.5 cents/pound on delivered (DEL) basis, while contract prices for chemical-grade propylene (CGP) settled at 25.0 cents/pound DEL. This change marks the first increase in propylene contracts since September 2019.
The increase is in line with the rise in spot prices, which was mostly driven by some production issues. BASF Total Petrochemicals' cracker at Port Arthur remains shut, while Enterprise Products' 750,000 tons/year propane dehydrogenation (PDH) unit at Mont Belvieu has been reportedly taken offline since June 4. Front-month PGP was traded at 21.50-28.00 cents/pound in June, rising from 20.00-24.00 cents/pound in the prior month.
