Propylene for June falls in USA as demand weakens

07-Jun-10

Propylene for June fell by 8 cents/lb (US$176/ton) on weaker demand and a persistent slide in spot prices, as per ICIS news. This takes polymer-grade propylene (PGP) to 55.50 cents/lb and chemical-grade propylene (CGP) to 54.00 cents/lb. Producers in the region had originally nominated reductions of 4 and 5 cents/lb for June, but as H2-May spot prices softened, consumers pressed for a larger decrease. Weaker polypropylene (PP) demand and increasing monomer supply have pressured the propylene market. Except for one, most US olefins plants had resumed operations as supplies of ethylene and propylene continue to increase.