In the U.S. polymer market, polymer-grade propylene (PGP) prices inched lower on Monday, reflecting a soft trading tone and lackluster demand. According to an anonymous industry source speaking to Polymerduniya, “spot PGP prices fell due to a weak trading momentum and subdued demand conditions.”
PGP spot delivered prices were assessed at 32.00–32.50 cents per pound FD US Gulf, down approximately 1.50 cents/lb compared to last Friday’s assessed range. Meanwhile, refinery-grade propylene (RGP) held steady, assessed at 31.50–32.00 cents/lb FD US Gulf, signaling limited movement in non-polymer-demand‑driven grades.
The decline in PGP reflects growing caution among downstream buyers amid uncertain macroeconomic sentiment. Despite broader concerns over supply tightening later in 2025, market participants remain hesitant to commit to large purchases in the immediate term. Recent reports suggest U.S. spot PGP entered a contango structure by late December 2024, hinting at expectations of modest future gains even as current sentiment stays negative.
Although longer‑term trends suggest tightening supply and upward pressure later in the year, particularly as new PP plant capacity comes online and refinery units undergo shutdowns, the near‑term environment remains bearish. Market watchers anticipate that any rebound in propylene prices will largely depend on improved demand visibility and clarity on economic drivers in the coming months
