For the Quarter Ending June 2025
Asia-Pacific (APAC)
• The Propylene Price Index in APAC declined by 5.1% over Q2 2025 compared with Q1. Prices settled at USD 876/MT, Propylene FOB Qingdao by the end of June.
• Prices fell amid robust supply, rising refinery and PDH operating rates, and weak downstream demand. Holiday-related slowdowns and tariff uncertainties further limited market activity.
• Why did the price of Propylene change in July 2025 in APAC? Prices remained flat in early July due to continued supply surplus and muted demand. Despite rising feedstock costs and port congestion, low buying interest from the downstream plastic and PP sectors kept pricing subdued.
• The Propylene Production Cost Trend was influenced by rising crude oil prices and stable-to-high plant utilization. However, increased inventory and limited demand offset cost pressure, keeping prices soft.
• The Propylene Demand Outlook was bearish. A seasonal slowdown, muted trade post-holidays, and cautious procurement amid tariff concerns reduced restocking across Asia.
• Export momentum of Propylene weakened as regional oversupply and subdued global demand limited foreign buying, despite competitive prices.
• Domestic procurement in APAC was conservative, shaped by oversupply, high inventories, soft polypropylene and polymer consumption, and ongoing trade friction.
North America
• The Propylene Price Index in North America declined by 15.5% over Q2 2025 compared with Q1. Prices settled at USD 803/MT, Propylene Polymer Grade DEL US Gulf by the end of June.
• Prices trended downward throughout Q2 due to persistently weak downstream demand, ample inventories, and subdued buying activity despite rising crude oil costs.
• Why did the price of Propylene change in July 2025 in North America? Prices held steady in early July as abundant stockpiles and sluggish demand from polypropylene converters countered any impact from elevated logistics costs or isolated supply disruptions.
• The Propylene Production Cost Trend was shaped by a recovery in upstream crude oil prices, yet the impact was offset by oversupply and reduced polypropylene plant operating rates. Force majeure events early in Q2 created a brief tightening but had a limited sustained effect.
• Propylene Demand Outlook remained soft. Downstream converters showed minimal interest due to global trade uncertainty, weak end-use demand, and cautious procurement strategies post-tariff announcements.
• The export momentum of Propylene was poor amid weak overseas interest and more competitive import alternatives from Asia and the Middle East.
• Domestic procurement in North America was conservative, shaped by declining business and consumer confidence, reduced polypropylene production, and inflationary pressures on manufacturing costs.
Europe
• The Propylene Price Index in Europe declined by 3.5% over Q2 2025 compared with Q1. Prices settled at USD 928/MT, FD Hamburg by the end of June.
• Prices remained under pressure due to persistent downstream weakness, ample inventories, and cautious procurement from converters, who avoided building stock amid sluggish orders.
• Why did the price of Propylene change in July 2025 in Europe? Prices remained flat in early July despite ongoing port congestion and elevated freight rates. Downstream polypropylene demand stayed soft, and the absence of new tariff shocks or refinery outages prevented any significant market movement.
• The Propylene Production Cost Trend was shaped by fluctuating crude oil prices and rising logistics expenses. However, high refinery operating rates and increased PDH output maintained robust propylene availability throughout the quarter.
• The Propylene Demand Outlook was weak. A seasonal slowdown, paired with post-Eid market inertia, sluggish polymer demand, and cautious restocking behavior, kept procurement minimal.
• Export momentum of Propylene declined as Asian and Middle Eastern imports remained more competitive, with a stronger euro and soft European prices dampening export interest.
• Domestic procurement in Europe was subdued, driven by inflation, trade policy uncertainty, and weak end-market demand across the automotive, packaging, and construction sectors.
Middle East & Africa (MEA)
• The Propylene Price Index in MEA declined marginally by 1.3% over Q2 2025 compared with Q1. Prices settled at USD 835/MT, FOB Al Jubail by the end of June.
• However, Prices were largely steady, supported by counterbalancing forces—rising production costs due to fluctuating crude oil values and weak demand from the downstream polypropylene segment.
• Why did the price of Propylene change in July 2025 in MEA? Prices held flat in early July as buyers remained cautious post-Eid. Downstream PP demand was slow to recover, and despite lower spot availability due to maintenance, market sentiment stayed neutral amid uncertain cost fundamentals.
• The Propylene Production Cost Trend was mixed. While crude oil prices rose in early June, they declined toward the end of the month, negating cost pressure. Maintenance at key units briefly constrained supply but was offset by high inventories and lower downstream off-take.
• Propylene Demand Outlook remained weak due to religious holidays, subdued restocking, and a lack of post-Eid recovery in the downstream sectors. Buyers' delayed decisions amid global trade uncertainty and inflationary pressures.
• Export momentum of Propylene remained underwhelming as trade with Asian markets faced logistical delays, tariff burdens, and seasonal buying slowdowns, limiting shipment activity.
• Domestic procurement in MEA was muted. Soft regional plastic and packaging demand, ample local inventory, and religious observances shaped a conservative buying strategy through most of Q2.
South America
• The Propylene Price Index in South America declined by 14.3% over Q2 2025 compared with Q1. Prices settled at USD 887/MT, Propylene Polymer Grade CFR Santos by the end of June.
• Prices were under persistent pressure due to soft downstream demand, ample inventory levels, and a surge in low-cost imports—particularly from the USA.
• Why did the price of Propylene change in July 2025 in South America? Prices remained relatively stable in early July, as buyers continued to adopt a cautious approach. Despite marginal cost pressure from rising feedstock crude oil values in exporting regions, the oversupplied market and sluggish downstream demand prevented any significant upward momentum.
• The Propylene Production Cost Trend was influenced by rising feedstock costs in the USA, but these were largely offset by low manufacturing costs and weak end-user demand. A force majeure at Chevron Phillips in Port Arthur briefly reduced outbound supply, but Brazil’s inventory levels remained sufficient.
• Propylene Demand Outlook was subdued, affected by limited activity in key industries like automotive and construction, as well as cautious procurement strategies due to tariff-related uncertainties and falling consumer confidence.
• Export momentum of Propylene into Brazil remained strong from the USA, but local demand was weak, and higher inventories kept downstream consumption low. Influxes of lower-priced cargoes pressured regional producers.
• Domestic procurement in Brazil was cautious. Buyers remained on the sidelines amid bearish downstream conditions, elevated stock levels, and hesitancy linked to the global trade environment and continued tariff volatility.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, Propylene prices in North America have been marked by a downward trend, followed by an uptrend. Initially, in January, propylene prices in the USA increased as global demand surged ahead of the Lunar New Year, and domestic suppliers faced tight availability. Quarterly, the propylene prices in the USA have increased by 2.2% as compared to the last quarter of 2024.
However, in February 2024, propylene prices started to decline due to lower crude oil prices, prompting manufacturers to lower their propylene offers. The easing of supply chain pressure and steady recovery in inventory levels contributed further to the downward market trend.
By March, the market remained under bearish pressure as uncertainty around trade policies and potential tariffs dampened market sentiment. Even though downstream polypropylene prices saw temporary increases, actual demand failed to pick up, keeping buyer activity subdued. The textile and polyester sectors also faced significant demand challenges, with buyers hesitant to make large purchases due to market uncertainty and high stock levels.
APAC
The Q1 2025, Propylene prices in the APAC region have been marked by a downward trend, followed by an uptrend. At the beginning of January, Propylene prices in Thailand increased due to tight supply from South Korea, and higher feedstock crude oil prices which increased production costs. This created a bullish environment, although the gains were capped by low activity from the downstream polypropylene sector. Quarterly, the propylene prices in Thailand have increased by 3.7% as compared to the last quarter of 2024. By February, Propylene prices in Thailand had decreased due to the Lunar New Year led to a widespread business slowdown. With reduced operating rates in the downstream polypropylene industry and lower crude oil prices, manufacturing costs dropped. Supply conditions improved slightly due to lower freight charges and balanced exports from South Korea, but overall demand remained weak. In March, the trend continued with persistent weak demand from the polypropylene and polyester sectors, combined with uncertainty caused by global trade policies and tariff concerns, which began to weigh on the market.
Europe
The Propylene prices in Europe in Q1 2025 witnessed an inclined trend of 11.1% as compared to the fourth quarter of 2024. Despite the lackluster demand, the propylene prices in Germany continued to gain strength throughout Q1 2025, mainly supported by supply-side challenges. Persistent production issues, logistical bottlenecks, and shipping route diversions prevented the market from cooling off. In January 2025, reduced production rates across Europe, frequent planned and unplanned plant shutdowns, and lower operational levels at polymer and petrochemical facilities placed pressure on available inventories. Cracker run rates remained low, and inventory data pointed to significant weekly declines, further indicating reduced material availability. Logistical hurdles worsened the situation, with vessel shortages and high port congestion, particularly in Hamburg, slowing down the movement of goods during February 2025. Despite, demand from the downstream polymer and polypropylene sectors remained subdued, propylene prices in Germany have continued to remain bullish to settle at USD 1053/MT, Propylene FD Hamburg during the concluding week of March 2025.
MEA
The first quarter of 2025 in the MEA region witnessed an upward trend of 2.9% in Propylene prices, as compared to the fourth quarter of 2024. In January, Propylene prices in Saudi Arabia increased with healthy trading activity, supported by restocking efforts ahead of the Lunar New Year. However, the market remained cautious due to shifts in demand, ongoing geopolitical tensions, and seasonal factors. Several production units, including major plants like NATPET and Petro Rabigh, announced maintenance shutdowns, further limiting the availability of propylene. Additionally, regional tensions in the Middle East, particularly involving shipping routes in the Red Sea, contributed to delays and higher freight costs. However, propylene prices in Saudi Arabia started to decline in March due to weaker demand from the downstream sectors, particularly polypropylene and polyester. The approach of Ramadan in March also led to a decline in market activity, as business hours shortened, and consumer sentiment softened. While demand did increase slightly in February due to seasonal expectations, it did not fully materialize as anticipated.
South America
In the first quarter of 2025, propylene prices in South America experienced a mixed trend, beginning with an increase and followed by a steady decline. In January, propylene prices in Brazil rose as global demand picked up ahead of the Lunar New Year, and domestic supply remained tight. Overall, propylene prices in Brazil saw a quarterly increase of 5.9% compared to the final quarter of 2024. However, this upward momentum reversed as falling crude oil prices prompted producers to reduce their propylene offers. Additionally, improved inventory levels and easing supply chain constraints added to the downward pressure on the market. By March, bearish market conditions persisted. Growing uncertainty over trade policies and potential tariffs weakened market confidence. Despite a brief rise in downstream polypropylene prices, actual demand remained lackluster, with buyers showing limited interest. The textile and polyester sectors also struggled with subdued demand, as many buyers refrained from placing large orders due to high inventory levels and overall market caution.
For the Quarter Ending December 2024
North America
The fourth quarter of 2024 for Propylene in North America has been marked by a significant downward trend in prices, driven by low demand from downstream industries. Propylene prices in the USA have continued to decline during October 2024 due to limited trading activity. Despite the reduced operating rates of several propylene plants, supply remained ample due to plenty of availability and the strategic discounts offered by manufacturers to stimulate sales. The continuous low demand for Propylene from the downstream polypropylene industry has weakened the market sentiments.
The sluggish US economy and tepid end-user demand, particularly post-election in November, have further dampened domestic consumption of US downstream polypropylene. Additionally, the continuous drop in feedstock crude oil prices has further provided downward pressure on propylene.
However, the minimal hike in December 2024 was attributed to the dwindling market sentiments that surged the prices. However, the overall trend was bearish due to low demand from the downstream plastic sector which lowered the market sentiments.
APAC
In Q4 2024, the APAC region witnessed a decrease in Propylene prices, as compared to the third quarter. The Propylene demand from the downstream polypropylene market has failed to rebound despite the Asian holiday season. The demand for polymers has stayed far lower than what is typically anticipated in October 2024. Given the low demand across the majority of end-user sectors, the majority of converters report having enough stockpiles. In the meantime, spot trade had decreased in the global propylene market as a whole, and demand was still being hampered by poor derivative markets. Despite a strong turnaround season, the demand for material has decreased due to a significant surge in inventory levels. However, the bullish sentiment in November was tempered by a significant build-up of domestic propylene inventories and high competition. South Korean duty-free Propylene has created immense competition in the market. Moreover, the overall decline in the feedstock Crude oil prices has lowered the manufacturing costs which further kept the Propylene market prices lower in the fourth quarter.
Europe
The Propylene market in Europe in Q4 2024 witnessed declining prices as compared to the third quarter. During October, propylene prices in Europe, including Germany, experienced a significant decline. This downturn was primarily attributed to subdued trading activity. Despite reduced operating rates at several propylene plants, ample supply remained in the market due to robust availability and strategic discounts offered by manufacturers to stimulate sales. This oversupply situation was further exacerbated by the return of some propylene production units to operation. Consequently, market sentiment remained bearish as propylene inventories across the domestic market continued to build up. Additionally, the decline in feedstock crude oil prices provided further support to the bearish market sentiment during this timeframe. In November, the sluggish Euro economy and tepid end-user demand, a post-summer slump persisted, have further dampened domestic consumption of downstream polypropylene. However, in December, despite the year-end destocking Propylene prices in Europe somewhat rebounded during December 2024, while the overall trend remained bearish.
South America
The South American propylene market experienced a significant price decline throughout the fourth quarter of 2024, primarily driven by sluggish demand from downstream industries. In October, propylene prices in Brazil continued their downward trajectory amidst subdued trading activity. Despite reduced production at several propylene plants in the USA, ample supply persisted in Brazil due to robust availability and strategic discounts offered by manufacturers to stimulate sales. Moreover, weak demand from the downstream polypropylene industry further dampened market sentiment. This bearish trend intensified in November as the sluggish economy and tepid end-user demand, significantly impacted domestic polypropylene consumption. Furthermore, the persistent decline in crude oil prices exerted additional downward pressure on propylene prices. However, a slight price increase was observed in December, albeit against a backdrop of prevailing bearish sentiment. This minor upward movement was primarily attributed to dwindling market liquidity, which can sometimes lead to price fluctuations. Nonetheless, the overall market trend remained firmly bearish due to persistently weak demand from the downstream plastics sector, which continued to exert a significant downward influence on market sentiment.
MEA
The fourth quarter of 2024 in the MEA region witnessed a downward trend in Propylene prices, as compared to the third quarter. The Propylene prices in Saudi Arabia continued to decline in October 2024. The return of some propylene manufacturing units to production further exacerbated the oversupply situation. Buyers in the region held sufficient inventories and showed no urgency to restock, leading to subdued trade discussions. Despite expectations for a rebound in demand post-holiday, economic headwinds and oversupply continued to weigh on the propylene market. Inventories built up due to poor demand in both domestic and export markets, overshadowing early signs of a potential seasonal recovery. However, the prices have rebounded during November 2024 amid the intensified Israeli attacks in Lebanon have heightened concerns about potential disruptions to logistics and supply routes in the region. Additionally, the competitive landscape has become increasingly challenging for Saudi Arabian suppliers, as Asian sellers are aggressively vying for market share with their competitive pricing. To counter this pressure, Saudi Arabian manufacturers have resorted to increasing their prices to maintain profitability.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Propylene in North America has been marked by a significant upward trend in prices, driven by a combination of supply constraints and increased demand from downstream industries. Maintenance shutdowns at key production facilities, unexpected outages, and delays in deliveries have all contributed to a tightening of supply, putting pressure on prices.
Additionally, rising costs of feedstocks such as propane have further fueled the price increase during July 2024. The market sentiment has been predominantly bullish, with consumers regaining confidence and resuming orders, particularly in the polypropylene sector. This resurgence in demand, coupled with seasonal consumption patterns, has led to a notable price surge.
However, the Propylene market faced low demand in the downstream polypropylene sector amid a decline in order books from the automotive industry which lowered the quotations during September 2024. The second half of the quarter saw a slight price increase of 2%, culminating in a quarter-ending price of USD 1110/MT of Propylene Polymer Grade CFR Manzanillo.
APAC
In Q3 2024, the APAC region witnessed a decrease in Propylene prices, followed by an uptrend. During July, logistical hurdles like container shortages and surging freight rates empowered sellers to raise prices. This bullish trend was further fueled by dwindling domestic supply caused by maintenance work at propane dehydrogenation plants. Adverse weather conditions, such as Typhoon Gaemi in the Philippines, Taiwan, and China, have disrupted industrial activities and transportation within the Asian market during August 2024. However, the market experienced a negative trend, primarily driven by subdued demand from the downstream Polypropylene sector during September 2024. Although Japan has faced transportation issues due to heavy rainfall and Typhoons, the supply of Propylene was unaffected due to the resumption of operations at several plants in South Korea, following maintenance shutdowns, which led to an oversupply of propylene in the Japanese market. The second half of the quarter saw a further decline of 2% in prices compared to the first half. The quarter-ending price stood at USD 840/MT of Propylene CFR Nagoya in Japan, reflecting the prevailing negative pricing environment in the region.
Europe
The Propylene market in Europe in Q3 2024 witnessed fluctuating prices driven by a variety of factors. Low demand from downstream industries, economic uncertainties, and reduced consumer interest in polymers contributed to the market decline during July 2024. Additionally, optimized production processes by European manufacturers helped manage inventories and mitigate the impact of rising freight costs. However, during August 2024 buyers showed little urgency to replenish stocks due to high freight charges which rebounded the Propylene prices during this timeframe. Although Europe has faced transportation issues due to the Red Sea, the supply of Propylene was unaffected during September 2024 due to the resumption of operations at several plants, following maintenance shutdowns, which led to an oversupply of propylene in the domestic market. In Germany, the market experienced the most significant price changes, reflecting broader trends in the region. The comparison between the first and second half of the quarter showed price stability, with no significant variations. The quarter-ending price for Propylene CIF Hamburg in Germany stood at USD 962/MT, reflecting the overall stable pricing environment in the region.
MEA
The third quarter of 2024 in the MEA region witnessed a downward trend in Propylene prices, with Saudi Arabia experiencing the most significant price changes. Players in the Middle Eastern propylene markets rolled over their quotations for July 2024 amid several vendors and buyers were being cautious due to sluggish downstream industry demand which made buyers reluctant to accept the increased price quotes. Additionally, the summer lull in Saudi contributed to a lack of consumer enthusiasm which declined the market activity as industry participants took advantage of the holiday period to recharge. However, due to supply-driven pricing pressure amidst logistical issues and an increase in freight charges, the market dynamics have rebounded during August 2024. Several factors influencing the decline included weakened demand from downstream sectors, particularly in polypropylene, coupled with decreasing production costs driven by lower crude oil prices which lowered the Propylene market during September 2024. The comparison between the first and second half of the quarter showed a slight decline of 1%. The quarter-ending price for Propylene FOB Al Jubail in Saudi Arabia stood at USD 846/MT, reflecting the prevailing decreasing sentiment in the pricing environment.
South America
In Q3 2024, the South American region witnessed a significant increase in Propylene prices, with Brazil experiencing the most notable price changes. The elevated production costs due to soaring crude oil prices during July 2024 made the Propylene prices higher. While demand from downstream sectors, including polypropylene, remained subdued, logistical challenges such as container shortages and elevated freight costs from the USA to Brazil, exacerbated by hurricane season in the USA following the floods in the southern state of Rio Grande do Sul enabled sellers to command higher prices during August 2024. However, the resumption of operations at several plants, following maintenance shutdowns, led to an oversupply of propylene in the Brazilian market during September 2024. Notably, the quarter-on-quarter increase of 15% accentuated the positive pricing environment. The correlation between price changes in the first and second half of the quarter remained steady at 1%, reflecting a consistent upward trajectory. Brazil, in particular, observed a bullish market scenario, culminating in the quarter-ending price of USD 1106/MT for Propylene Polymer Grade CFR Santos.
Frequently Asked Questions (FAQs):
1. What is the current price of Propylene in APAC?
By the end of Q2 2025, Propylene prices in China stood at approximately USD 876/MT FOB Qingdao.
2. What is the current price of Propylene in North America?
By the end of Q2 2025, Propylene prices in the USA stood at approximately USD 803/MT Propylene Polymer Grade DEL US Gulf.
3. What is the current price of Propylene in Europe?
By the end of Q2 2025, Propylene prices in Germany stood at approximately USD 928/MT FD Hamburg.
4. What is the current price of Propylene in MEA?
By the end of Q2 2025, Propylene prices in Saudi Arabia stood at approximately USD 835/MT FOB Al Jubail.
5. What is the current price of Propylene in South America?
By the end of Q2 2025, Propylene prices in Brazil stood at approximately USD 887/MT Propylene Polymer Grade CFR Santos.
6. Why did Propylene prices change in July 2025?
• APAC: Prices remained flat in early July due to continued supply surplus and muted demand. Despite rising feedstock costs and port congestion, low buying interest from the downstream plastic and PP sectors kept pricing subdued.
• North America: Prices held steady in early July as abundant stockpiles and sluggish demand from polypropylene converters countered any impact from elevated logistics costs or isolated supply disruptions.
• Europe: Prices remained flat in early July despite ongoing port congestion and elevated freight rates. Downstream polypropylene demand stayed soft, and the absence of new tariff shocks or refinery outages prevented any significant market movement.
• MEA: Prices held flat in early July as buyers remained cautious post-Eid. Downstream PP demand was slow to recover, and despite lower spot availability due to maintenance, market sentiment stayed neutral amid uncertain cost fundamentals.
• South America: Prices remained relatively stable in early July, as buyers continued to adopt a cautious approach. Despite marginal cost pressure from rising feedstock crude oil values in exporting regions, the oversupplied market and sluggish downstream demand prevented any significant upward momentum.
