Polymer grade propylene (PGP) prices in the United States declined on Tuesday, pressured by a slowdown in trading activity and subdued demand from downstream sectors. Market participants noted that sentiment has weakened further as buyers remain hesitant to commit, reflecting cautious inventory management amid uncertain macroeconomic conditions.
Spot delivered PGP was assessed at 31.00–31.50 cents/lb FD US Gulf, marking a fall of 0.50 cents/lb from Monday’s levels. The decline underscores persistent fragility in the U.S. propylene market, where consumption across packaging, automotive, and construction-linked derivatives has been sluggish.
In contrast, refinery grade propylene (RGP) prices held steady at 31.50–32.00 cents/lb FD US Gulf, reflecting balanced supply-demand fundamentals in that segment. Traders suggest that while feedstock costs remain relatively stable, the lack of momentum in polymer grade transactions could keep prices under pressure in the near term.
Overall, the U.S. propylene complex remains delicately poised, with demand recovery yet to materialize and downstream buyers continuing to exercise restraint. Market participants will be closely monitoring production rates and inventory movements in the coming weeks to gauge whether further declines are likely.
