US propylene prices in the US Gulf Coast market remained unchanged on Monday, underscoring a continuation of subdued trading activity across both polymer-grade and refinery-grade grades. Polymer-grade propylene was assessed at 35.00–35.50 cents per pound (FD US Gulf), while refinery-grade held firm at 29.00–29.50 cents per pound, identical to last Friday’s levels.
Industry participants attributed the rollover to a chilling of market interest, noting that although upstream feedstock prices such as crude and naphtha showed firmness, these gains failed to spark downstream buying. A US-based trader, speaking on condition of anonymity, commented that “the pricing undertone remained largely stable…trading activity slowed due to widening gaps in pricing expectations between buyers and sellers”. The widening bid‑ask spread has left both buyers and sellers entrenched, prolonging negotiations and muting volume.
This rollover follows patterns seen earlier this year, when propylene prices experienced downward pressure amid weak feedstock levels and muted demand from polypropylene converters and polyester producers. Despite periodic gains in crude oil reducing production costs, downstream buyers have remained on the sidelines, citing ample inventories and ongoing trade uncertainties.
Absent a clear catalyst, such as PDH or propane cracker outages, a sharp swing in cracker utilization, or an uptick in polypropylene downstream demand, prices seem poised to remain range‑bound. For market stakeholders, this means that margin preservation is critical: producers and traders must monitor crack spreads and inventory levels closely, while buyers should weigh staggered purchasing strategies to manage risk.
With polymer-grade hovering near 35 ¢/lb and refinery-grade around 29–29.5 ¢/lb, the propylene market appears locked in a waiting pattern. Any deviation from this equilibrium will likely depend on unexpected shifts in capacity or stronger downstream offtake, variables that remain uncertain in this languid environment.
