Propylene contract prices in the United States settled lower for August 2025, reflecting weaker downstream demand and steady supply levels that continue to weigh on market sentiment.
According to a local industry source, polymer grade propylene (PGP) contracts for August finalized at 35.50 cents per pound, while chemical grade propylene (CGP) settled at 34.00 cents per pound. Both grades fell by 2.00 cents per pound compared with their July 2025 settlements.
The downward adjustment underscores the fragile balance in the US propylene market, where plentiful supply from propane dehydrogenation (PDH) units and refinery operations has coincided with soft consumption from downstream polypropylene and derivative chains. Market participants noted that muted buying activity throughout July and August set the tone for lower settlements, as converters remained cautious in the face of sluggish demand in packaging, automotive, and consumer goods sectors.
Despite the decline, traders suggested that contract prices still represent a relatively stable outcome given broader global volatility. Internationally, Asian markets remain oversupplied due to ongoing capacity expansions in China, while Europe continues to wrestle with weak downstream demand and competitive imports. Against this backdrop, US producers are facing pressure to maintain margins even as export opportunities remain limited.
Looking ahead, industry observers believe that September settlements will hinge on both feedstock dynamics and the degree of recovery in polypropylene demand. With natural gas liquids (NGL) production in the US still robust and domestic consumption in downstream plastics struggling to gain momentum, expectations remain skewed toward continued price softness unless seasonal restocking provides a temporary lift.
