The U.S. propylene market delivered a split performance last week, with polymer grade propylene (PGP) slipping under the weight of oversupply and muted demand, while refinery grade propylene (RGP) held steady. An industry source told that the polymer grade spot market remains weak due to stable fundamentals. Oversupply and subdued downstream demand continue to exert downward pressure, with no reported transactions or fresh bids.
Despite a modest rise in crude oil prices, upstream cost pressures failed to lift sentiment. Ample inventories and cautious purchasing behavior kept polymer grade prices soft. In the polypropylene (PP) sector, U.S. exports faced stiff competition from lower-priced Asian-origin PP, particularly in China. Even competitively priced U.S. material struggled to gain traction.
By Friday, spot PGP was assessed at 31.00–31.50 cents per pound FD U.S. Gulf, down approximately 1.50 cents from the previous week. RGP, meanwhile, held firm at 28.50–29.00 cents per pound FD U.S. Gulf. On the contract side, August 2025 PGP settled at 35.50 cents per pound, a 2.00 cent drop from July. RGP contracts followed suit, settling at 34.00 cents, also down 2.00 cents.
This divergence highlights the pivotal role of downstream demand in shaping price trajectories. With polypropylene markets under pressure and global competition intensifying, market participants will be closely monitoring for any signs of demand recovery or supply-side adjustments that could rebalance the landscape.
