US March propylene contracts settled lower compared to a month earlier, market sources informed SSESSMENTS.COM. The March polymer-grade propylene (PGP) contracts settled at 28.0 cents/pound on DEL (delivered) basis, while chemical-grade propylene (CGP) contracts settled at 26.5 cents/pound DEL.
Both contracts were down by 4 cents/pound from February and are at their lowest levels in 11 years. Meanwhile, Spot prices plunged by about 30% in March because of oil prices collapse, which pushed feedstocks propane and butane prices to 21-year lows. At the same time, demand for polypropylene (PP), the main derivative of propylene, has been weak due to the coronavirus pandemic.
