Polymer-grade propylene (PGP) prices climbed on Thursday across the U.S. Gulf Coast, buoyed by a flurry of healthy trading activity that reinforced the market’s upward tone. Traders reported that consistent buying interest throughout the week helped lift spot values despite steady fundamentals elsewhere in the supply chain.
An industry source told that the day’s market action reflected strong liquidity and firm demand from downstream polypropylene producers, who continue to secure feedstock amid expectations of stable operating rates. Spot polymer-grade propylene prices were assessed at 33.00–33.50 cents per pound, FD U.S. Gulf, marking a one-cent gain from Wednesday’s levels and extending the modest rally that began earlier in the week.
Refinery-grade propylene, by contrast, held steady at 28.50–29.00 cents per pound FD U.S. Gulf, underscoring the split performance between the two grades. Market participants noted that the more specialized polymer-grade product remains tightly aligned with polypropylene production needs, while refinery-grade volumes are seeing a more balanced flow between supply and demand.
Analysts said the uptick in PGP prices could persist in the near term if downstream demand remains steady and trading volumes stay elevated, although broader petrochemical market softness may temper further gains. For now, the market’s focus remains on maintaining supply security as producers navigate fluctuating feedstock dynamics and refinery operations along the Gulf Coast.
