U.S. Propylene Prices Rise in Late August 2025 on Supply Outages and Strong Auto Demand

Key Highlights:

• Propylene sellers achieved modest gains amid outages at key facilities, despite higher inventories, underscoring supply tightness and resilient downstream pull as primary drivers.
• Production was reduced due to plant problems, and with spot supply being just as relatively constrained, even exports were moving up.  
• September&#**;s propylene prices look to be increasing slightly again due to seasonal demand and weather-related issues.

U.S. propylene polymer grade prices increased *.*** in late August **** due to an acute supply shortages from unplanned and planned outages dominated any potential inventory builds. Spot availability was lean with outage-related issues. Even minor logistical issues or hurricane-season weather risks will escalate tightness.

On the supply side, the market grappled with significant constraints in late August. An outage at a Gulf Coast propane dehydrogenation (PDH) unit on August ** curtailed on-purpose propylene production, while...