Refinery grade propylene prices in the United States edged lower last week, while polymer grade values remained steady despite production hiccups. On Friday, refinery grade spot prices were assessed at 28.50–29.00 cents/lb FD US Gulf, a decline of 3.00 cents/lb from the previous week.
An industry source reported that refinery grade spot deals closed at reduced levels, pressured by weaker regional demand and falling upstream contract values. In contrast, polymer grade propylene (PGP) held its ground, assessed at 32.50–33.00 cents/lb FD US Gulf, unchanged week on week. Market participants cited increased trading activity and noted that production issues in Texas had limited impact due to persistently weak downstream demand, which has kept the market oversupplied.
The August 2025 propylene contract settled at 35.50 cents/lb for polymer grade and 34.00 cents/lb for chemical grade, both down 2.00 cents/lb from July. Market watchers said the contract decline was slightly smaller than expected, and attention is now turning to September for signs of further movement, though early indicators suggest relative stability.
Downstream polypropylene demand started September sluggishly after a late-August buying surge. Buyers remain cautious, purchasing only as needed, with little anticipation of near-term upward price pressure while PGP values stay steady. A market participant noted hints of improved fiber-market demand, potentially linked to some production shifting back to the US under new tariff conditions.
