Polymer-grade propylene prices in the US rose in the late December 2025, with DEL US Gulf PGP, marking a reversal of the prior 4-week declining trend and representing a tightening market condition. The bounce was caused mainly by a 0.5 million-barrel draw in US propylene stocks, which decreased the merchant supply and spurred buying interest. 125% tariffs on US exports of LPG to China have limited the flow of the propane feedstock and domestic production via PDHs has been constrained, adding to the supply squeeze. In addition, uncertainty in the crude oil market on geopolitical issues also fuelled that the predictions of feedstock costs. Still, seller sentiment was cautious as buyers of polypropylene kept a firm grip on spending amid inconsistent demand from downstream sectors. On balance, the tight stocks and pockets of downstream recovery supported the price rebound, but its further strength is contingent on wider upturns in polymer and derivative consumption towards the early 2026.
