In an unexpected turn on Thursday, polymer grade propylene (PGP) prices in the United States edged lower even as crude oil values moved higher. Market participants were left surprised as the usual correlation between crude and propylene failed to hold.
An industry source, speaking on condition of anonymity, revealed that the weakness was largely a result of muted trading activity and sluggish downstream demand. “Spot PGP prices fell due to a weak trading momentum and subdued demand conditions,” the source said, highlighting the disconnect between crude trends and propylene dynamics.
According to market assessments, spot delivered polymer grade propylene prices slipped by 1 cent per pound to the 28.50–29.00 cents/lb FD US Gulf range. This decline marks a notable contrast to Wednesday’s levels and underscores the soft sentiment prevailing across the market.
Meanwhile, refinery grade propylene (RGP) showed greater stability. Spot delivered RGP prices were assessed unchanged at 27.50–28.00 cents/lb FD US Gulf, signaling that supply-demand fundamentals for the lower grade remain relatively balanced.
Traders suggest that until demand from derivative segments such as polypropylene strengthens, the propylene market may continue to experience downward pressure despite supportive crude oil movements.
