Polymer grade propylene (PGP) prices in the United States moved higher last week, while refinery grade propylene (RGP) values held flat.
An industry source told Polymerduniya on condition of anonymity that the uptick in PGP was linked to increased trading activity for September, following weeks of price weakness in a long-supplied market with subdued demand.
However, market players cautioned that the slight rise does not reflect a shift in fundamentals. Demand remains muted, and stock levels are described as ample. “Increased upstream energy values also drove prices up in the region. Despite spot PGP prices being higher, propylene stock levels are robust, and the demand for derivatives is still low,” the source noted. According to the source, if spot prices remain under pressure, contract values could fall by as much as 3¢/lb when settled.
For August contracts, market participants are bracing for a potential decrease of 1-3¢/lb in PGP, echoing the sustained weakness in spot markets.
By Friday, PGP spot delivered prices were assessed at 31.50–32.00 cents/lb FD US Gulf, reflecting a week-on-week gain of 0.50 cents/lb. In contrast, RGP spot delivered prices held steady 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, both down 1.00 cent/lb from June 2025 settlements.
