Propylene prices in the US fell last week, touching their lowest point since April as oversupply and sluggish downstream demand weighed on the market.
A US-based industry source told Polymerduniya that spot polymer-grade propylene (PGP) prices were evaluated lower, reflecting recent trades. The decline, attributed to high inventory levels and weak demand from sectors such as packaging, automotive, and home goods, underscores the market’s oversaturated state. Even recent production disruptions failed to lift prices.
Falling crude oil prices, which lower propylene production costs, further contributed to the price drop. Meanwhile, uncertainty over potential US government tariffs has prompted market caution, dampening both investment and buying activity.
On Friday, PGP spot delivered prices were assessed at 31.50–32.00 cents/lb FD US Gulf, down 2.00 cents/lb from the previous week. Refinery-grade propylene (RGP) spot delivered prices fell to 30.50–31.00 cents/lb, a week-on-week drop of 1.00 cent/lb.
In the contract market, July 2025 PGP settled at 37.50 cents/lb and RGP at 36.00 cents/lb, both down 1.00 cent/lb from June 2025 settlements.
