US Nov propylene contract prices drop from October on high inventory levels

US propylene contract prices for November settled lower at 6 cents/lb (US$132/ton, €95/ton) from October as inventory levels remain high, as per ICIS. The decline pulled down polymer-grade propylene (RGP) contracts to 58 cents/lb, and chemical-grade propylene (CGP) contract down to 56.50 cents/lb. Initial settlements were first heard on Friday for PGP, but the CGP contract remains under negotiations. US propylene inventories gained 2% to 3.786m bbl in the first week of November from the previous week, continuing the increase that began in mid-September, according to the Energy Information Administration (EIA). Producers had nominated declines of 3.5 and 4 cents/lb for the month while a buyer predicted contracts would drop by as much as 6 cents/lb.