Propylene markets in Europe came under fresh downward pressure midweek, with prices slipping as buyers stayed on the sidelines and supply remained abundant across the region.
An industry source in Europe told that “the price drop was driven by weak buying sentiment and ample product supply in the region.” Market participants noted that sluggish demand from key downstream applications, including polypropylene and oxo-alcohols, has left sellers with little leverage to maintain earlier levels, forcing them to adjust offers lower to conclude trades.
On Wednesday, CIF Northwest Europe (NWE) propylene prices were assessed at EUR 770–780/mt, down by EUR 10/mt from Tuesday. Spot polymer-grade propylene prices followed the same trend, easing to EUR 770–780/mt FD NWE, reflecting the lack of momentum in the regional market. Sources added that while supply fundamentals remain steady, downstream sectors continue to show minimal signs of recovery, limiting opportunities for price stabilization.
In contrast, the Asian market held steady. FOB Korea propylene prices were assessed unchanged at USD 755–765/mt. Market participants in Asia reported limited activity, with supply deemed sufficient and buyers showing little urgency to secure fresh volumes ahead of September offers.
The divergence highlights the ongoing structural weakness in Europe, where subdued industrial activity and oversupply continue to weigh on sentiment, while Asia maintains a more balanced outlook despite similar demand challenges. Unless European demand improves meaningfully in the coming weeks, traders suggest the market could remain under pressure heading into September, with further downside risk if imports continue to flow in at competitive levels.
