U.S. polymer-grade propylene prices edged lower on Wednesday, slipping to 34.50–35.00 ¢/lb FD US Gulf, down by roughly 0.05 ¢/lb from Tuesday, while refinery-grade spot held steady at 31.50–32.00 ¢/lb FD US Gulf, unchanged.
A market participant, speaking anonymously, explained: “Spot PGP prices fell due to a weak trading momentum, mirroring subdued demand sentiments. Looking ahead, an anticipated rise in supplies is likely to exert further bearish pressure on spot prices.” Indeed, with U.S. propane dehydrogenation (PDH) units showing signs of inventory recovery and still-full downstream feedstock positions, increased availability is expected to weigh on propylene pricing.
Despite the modest decline in polymer-grade pricing, refinery-grade propylene remained resilient, reflecting more stable refinery operation rates in the Gulf Coast region. Early 2025 has seen heightened U.S. propylene volatility driven by the interplay of PDH production recovery and fluctuating demand levels.
In summary, U.S. polymer-grade propylene has come off slightly amid weak demand and expectations of increasing supply, while refinery-grade propylene remains steady, together underscoring a cautiously bearish sentiment in the domestic propylene space.
