Petrotahlil - US May propylene spot prices fell on lower trades this week, and May contract talks are ongoing.
Polymer-grade propylene (PGP) spot prices were assessed at 38.50-38.75 cents/lb ($849-854/tonne) DEL (delivered), down from 39.5-40.5 cents/lb last week.
May PGP was offered at 38.75-40.00 cents/lb to close the week.
May contract negotiations continued amid nominations for higher prices.
While supply is ample and inventories high, demand is relatively weak.
The main outlet for propylene is as a feedstock for polypropylene (PP). Propylene is also used to produce acrylonitrile (ACN), propylene oxide (PO), a number of alcohols, cumene and acrylic acid.
Major US propylene producers include Chevron Phillips Chemical, Enterprise Products, ExxonMobil, Flint Hills Resources and Shell Chemical.