Polymer grade propylene (PGP) prices in the US fell for the fifth consecutive week, while refinery grade propylene (RGP) values held steady.
An industry source, speaking to Polymerduniya on condition of anonymity, said, “US propylene spot prices continue to decline due to ongoing weak demand. No transactions were reported at the evaluated levels. Prices have fallen largely because of weak demand in the downstream polypropylene sector, alongside increasing inventories and abundant supply in the local market. Purchasers stayed wary due to economic and tariff-related uncertainties, contributing to negative market sentiment.”
Market participants noted that elevated bids persistently capped spot prices, as stagnant demand kept buyers on the sidelines.
The source added, “Downstream demand for propylene is presently low, especially from the polypropylene industry, which is experiencing decreased operating rates and slower sales due to weak end-use consumption in packaging, automotive, and consumer goods. Purchasers are being cautious, restricting new purchases due to sufficient stock levels, which has further caused propylene spot prices to decline.”
Declining crude oil prices also pressured US propylene markets, while muted export opportunities, owing to global oversupply and competitive Asian offers, restricted demand further. Tariff uncertainties and cautious consumer spending prevented aggressive inventory accumulation, compounding the weakness.
On Friday, PGP spot delivered prices were assessed at 31.00–31.50 cents/lb FD US Gulf, down 0.50 cents/lb from the previous week. In contrast, RGP spot delivered prices stood stable at 30.50–31.00 cents/lb FD US Gulf.
In the contract market, July 2025 US propylene contracts settled at 37.50 cents/lb for PGP and 36.00 cents/lb for RGP, marking a decline of 1.00 cent/lb from June 2025 levels.
