In spot markets Tuesday, January and February polymer-grade propylene (PGP) were heard offered at 47.5 cents/lb Mont Belvieu pipeline basis. February was heard traded Monday at 46.25 cents/lb MtB-pipe. Spot PGP was last heard traded at that level in late November 2009.
The drop comes after one US producer nominated its January contracts for an 8 cent/lb fall, tracking declining spot prices for PGP and feedstock refinery-grade propylene (RGP).
Overall, most downward pressure has been coming from global energy markets, which have lowered cracker feedslate costs and allowed overseas derivative producers to be more competitive with US product.