On Tuesday, U.S. propylene prices fell as lower upstream crude values and subdued regional buying weighed on sentiment. A U.S. industry insider told Polymerduniya that “the price fall was on the back of weaker upstream crude values and softer regional buying inquiries.”
Refinery-grade spot delivered propylene prices were assessed at 30.50–31.00 cents/lb FD US Gulf, down by 1.00 cent/lb from Monday. Polymer-grade spot delivered prices also declined to 31.50–32.00 cents/lb FD US Gulf, reflecting a 0.50 cent/lb drop from the previous day’s assessment.
The pullback comes amid a broader macroeconomic backdrop in which U.S. feedstock costs are easing, yet downstream demand, particularly from polypropylene producers, remains lethargic. ChemAnalyst reported a 5% drop in propylene prices in late April 2025, citing soft demand and rising inventories as key drivers, despite the crude rebound at the time.
Much like prior periods of volatility, U.S. Gulf Coast propylene fundamentals remain sensitive to seasonal trends, including refinery utilization and PDH operating rates. OPIS flagged shifting supply dynamics in early 2025 as adding to market fragility, despite near‑capacity operations lingering across PDH units and refinery converters.
This price correction signals continued strain for U.S. propylene markets, as ample supply and caution among polypropylene converters limit upward momentum, underscoring the remaining bearish trend across the value chain.
