US Propylene Price Weakness Continues in June, Oversupply Persists

The US propylene market is entering June **** under pronounced bearish pressure, with structural oversupply, weak derivative demand, and limited export pull setting the stage for another month of downward pricing. Market participants report that the combination of elevated refinery throughput, strong NGL recovery, and steady splitter operations is expected to keep propylene availability abundant through June.

This supply backdrop is colliding with sluggish downstream polypropylene consumption, particularly in packaging, automotive components, construction materials, and consumer goods, sectors that show little sign of a near-term rebound. Propylene export demand into Latin America and Asia remains muted, and with hurricane-season caution limiting restocking appetite, traders anticipate that June pricing will remain under pressure, barring an unexpected outage or a sudden improvement in global polypropylene flows.

Crude oil is projected to remain range-bound to slightly softer, which may compress cracker margins but will not meaningfully...