US Polypropylene (PP) contract prices, that have fallen by 8 cents/lb (US$176/ton) in the previous month, are likely to drop a few cents in July, as per ICIS. Large-volume PP buyers saw drops identical to PGP contract prices that fell by 12 cents/lb in May and 8 cents/lb in June.
Most large-volume PP contract business in the US is indexed to the polymer-grade propylene (PGP) benchmark contract price, which tends to settle at the beginning of the contract month. However, PP buyers with negotiated resin contract prices were able to take advantage of aggressive pricing and ample spot availability in May.
Market expectations are mixed for July propylene and PP, with most expectations centred on a possible decrease of 3-5 cents/lb. However, recent gains in feedstock propylene prices dim market outlook. June refinery-grade propylene (RGP) traded at 43 cents/lb this week, levels last seen at the end of May. After that, prices dropped into the upper 30s cents/lb during H1-June.