For the Quarter Ending September 2025
North America
• In the USA, the Propylene Oxide Price Index fell by 4.45% quarter-over-quarter, reflecting weak downstream demand.
• The average Propylene Oxide price for the quarter was approximately USD 1281.00/MT, reported by analysts.
• Propylene Oxide Spot Price drifted downward; elevated inventories and muted demand pressured Gulf Coast sellers.
• Propylene Oxide Price Forecast shows modest near-term volatility with small alternating upticks and declines expected.
• Propylene Oxide Production Cost Trend eased as feedstock propylene softened, reducing producer cost pressure July.
• Propylene Oxide Demand Outlook remains weak with construction and polyol sectors limiting procurement and restocking.
• Propylene Oxide Price Index volatility moderated as some plants resumed operations while inventories stayed elevated.
• Market participants expect limited upside absent supply disruptions, with spot and contract activity remaining constrained.
Why did the price of Propylene Oxide change in September 2025 in North America?
• Feedstock propylene uptick offered limited cost support amid generally weak upstream crude and elevated inventories.
• Domestic demand remained subdued in construction and polyol sectors, keeping procurement cautious and curbing buying.
• Resumption of some plant capacities eased tightness while inventories and weak export inquiries pressured prices.
APAC
• In Japan, the Propylene Oxide Price Index fell by 7.06% quarter-over-quarter, reflecting weaker regional demand.
• The average Propylene Oxide price for the quarter was approximately USD 1422.00/MT reflecting subdued conditions.
• Propylene Oxide Spot Price softened amid ample supply, subdued buying and limited downstream procurement urgency.
• Propylene Oxide Price Forecast suggests range-bound near-term movement, influenced by outages, holidays, and inventory dynamics.
• Propylene Oxide Production Cost Trend weakened as feedstock propylene prices declined, compressing producer margins further.
• Propylene Oxide Demand Outlook remains muted, construction and automotive weakness keep downstream polyol purchases defensive.
• Propylene Oxide Price Index volatility tracked inventories and export demand, with Asian restarts lifting availability.
• Major plant outages tightened regional supply, while overall ample capacity maintained downward pressure on offers.
Why did the price of Propylene Oxide change in September 2025 in APAC?
• Rising regional propylene and PO availability after restarts increased supply, outpacing weak downstream demand significantly.
• Feedstock propylene price fluctuations provided limited cost support, compressing producer margins and seller pricing flexibility.
• Pre-holiday stocking then completion of procurement reduced urgency, while inventories remained elevated, softening prices further.
Europe
• In Germany, the Propylene Oxide Price Index fell by 0.57% quarter-over-quarter, reflecting easing feedstock propylene and weak demand.
• The average Propylene Oxide price for the quarter was approximately USD 1403.67/MT, FOB Hamburg basis.
• Propylene Oxide Spot Price softened through August, pressured by ample supply, port congestion, and muted spot buying.
• Propylene Oxide Production Cost Trend weakened as feedstock propylene and softer crude benchmarks reduced processing cost support.
• Propylene Oxide Demand Outlook remains subdued amid weak construction, lower polyether polyol consumption, and cautious buyer behavior.
• Rising inventories and constrained exports dampened the Propylene Oxide Price Index despite occasional short-term restocking attempts.
• Propylene Oxide Price Forecast expects modest seasonal upticks post-holidays as some European plants resume following maintenance.
Why did the price of Propylene Oxide change in September 2025 in Europe?
• Oversupply from steady regional production and muted downstream demand led to downward pressure on prices.
• Lower feedstock propylene and softer crude benchmarks reduced cost support while port congestion increased logistical delays and inventories.
• Cautious buyers avoided forward buying amid seasonal lull and tariff driven export weakness, limiting restocking momentum.
For the Quarter Ending June 2025
North America
• The Propylene Oxide (PO) Price Index in the U.S. trended consistently lower in Q2 2025, with only a brief rise in early April on tightening inventories, followed by steady declines through May and June as weak demand and surplus supply drove bearish sentiment.
• April’s temporary price lift was supported by restocking and reduced availability, though downstream demand from polyurethane and polyether polyol sectors stayed soft due to a contracting construction market, while automotive production provided limited offsetting support.
• Prices weakened sharply in May as housing activity slowed further, export interest remained low, and ample feedstock propylene supply—amid falling crude oil benchmarks—kept production costs low and discouraged price stabilization efforts.
• June marked another notable decline, with poor construction-linked consumption, cautious procurement strategies, and continued export softness combining with bearish upstream trends to keep PO prices under heavy pressure.
Why did the price of Propylene Oxide (PO) change in July 2025 in North America?
• In July, the Propylene Oxide (PO) Price Index in the U.S. stayed stable as balanced supply, soft domestic construction-linked demand, and modest automotive sector support kept pricing steady despite subdued market fundamentals.
• The PO Production Cost Trend remained moderate, with propylene tracking weaker crude benchmarks, while smooth Gulf Coast port activity and manageable inventories allowed producers to sustain competitive offers without volatility.
• The PO Price Forecast signals continued stability into August, as steady export flows and incremental automotive-driven demand are expected to counterbalance weak construction-related polyurethane and polyether polyol consumption.
Asia
• The Propylene Oxide (PO) Price Index in Asia tracked a consistent downtrend through Q2 2025, with only a brief uptick in early May, as persistent oversupply, soft feedstock propylene costs, and sluggish downstream demand weighed on sentiment.
• April pricing weakened as inventories rose despite reduced plant utilization, with real estate-driven demand for polyether polyols and polyurethane remaining depressed.
• May brought a short-lived lift from temporary plant maintenance, but prices still trended lower month-on-month as Guangxi Petrochemical prepared to add 270,000 tons/year of new capacity and construction-linked demand failed to recover.
• In June, prices slid again as propylene costs fell, capacity utilization eased to 62.7%, and summer construction lulls curtailed polyurethane and polyol offtake, while export orders softened, leaving sentiment subdued despite steady logistics and import flexibility.
Why did the price of Propylene Oxide (PO) change in July 2025 in Asia?
• In July, the Propylene Oxide (PO) Price Index in China moved lower as rising domestic supply, elevated inventories, and soft downstream demand from polyether polyols and polyurethane markets kept pressure on sentiment.
• The PO Production Cost Trend stayed weak, with propylene tracking softer crude benchmarks, while intra-Asia freight rate declines and congestion at Laem Chabang and Qingdao disrupted trade flows but failed to tighten availability.
• The PO Price Forecast points to continued softness into August, as construction-linked polyurethane demand remains subdued in flood-affected regions, while high stocks and cautious procurement limit any near-term rebound despite regional logistical delays.
Europe
• The Propylene Oxide (PO) Price Index in Europe followed a mixed trajectory in Q2 2025, holding steady at low levels through April, fluctuating in May due to feedstock-driven cost swings, and rising in June as automotive demand and logistical disruptions lent mild support.
• April pricing stability reflected oversupply, subdued construction-linked demand, and ample inventories despite capacity cuts from the Maasvlakte closure, while low Rhine water levels and Hamburg congestion constrained exports but failed to boost prices.
• May saw a brief uptick from higher propylene costs amid plant outages, but this reversed as maintenance concluded and weak construction-sector demand, excess capacity, and soft crude oil benchmarks reasserted downward pressure on prices.
• In June, spot prices firmed slightly on improved automotive-sector consumption, notably from EV-related polyurethane demand, while persistent congestion at Hamburg and modest logistical delays curtailed export fluidity, prompting firmer domestic offers despite weak construction-driven demand.
Why did the price of Propylene Oxide (PO) change in July 2025 in Europe?
• In July, the Propylene Oxide (PO) Price Index in Europe moved lower as ample regional supply, muted downstream demand from polyether polyols and polyurethane, and soft propylene feedstock costs kept sellers under pressure.
• The PO Production Cost Trend remained weak, with propylene tracking subdued crude benchmarks, while heavy congestion at Hamburg slowed exports, amplifying stock buildup despite steady plant operations.
• The PO Price Forecast points to continued downside into August, as eurozone construction weakness, thin overseas procurement, and elevated inventories are expected to outweigh any logistical disruptions or seasonal adjustments.
For the Quarter Ending March 2025
North America
Throughout Q1 2025, the propylene oxide (PO) market in North America showed a mixed trend. In January, prices edged up slightly as feedstock propylene costs tightened and restocking activity resumed post-holidays, despite soft construction-related demand and logistical disruptions from winter weather along the Gulf Coast.
February saw prices decline due to weakened downstream demand from polyurethane, polyether polyols, and coatings, along with continued slowdowns in housing construction and industrial activity. Lower feedstock prices and margin pressure on producers like LyondellBasell also contributed to the bearish sentiment.
By March, PO prices fell further as excess supply, ongoing trade uncertainties, and reduced export momentum continued to weigh on the market. Downstream industries remained cautious, with only modest gains in housing starts offset by a drop in building permits and completions. Construction labor growth offered some support, but overall demand for PO-based applications stayed muted amid high costs and economic headwinds. Propylene oxide prices in the U.S. ended Q1 2025 at USD 1,443/MT FOB Louisiana.
APAC
Throughout Q1 2025, the propylene oxide (PO) market in APAC followed a mixed trend. January began with a slight price increase, supported by firmer feedstock propylene costs and tightened supply from reduced plant run rates. However, downstream demand from downstream polyether polyols and polyurethane sectors remained weak as seasonal slowdowns and cautious procurement strategies limited overall momentum. In February, prices fell as an oversupply from new PO units and high inventories coincided with Lunar New Year holidays, slowing market activity. Major producers engaged in price competition to offload excess stock, while downstream demand remained stagnant amid construction delays and weak industrial consumption. March saw continued pressure on PO prices, with oversupply deepening due to resumed operations and minimal impact from maintenance shutdowns. Despite a modest decline in plant operating rates, overall supply rose, while feedstock propylene prices softened. Sluggish export activity, Ramadan-related demand slowdowns, and limited construction-sector recovery further weighed on sentiment, keeping prices under sustained pressure. Propylene oxide prices in China closed Q1 2025 at USD 960/MT CFR Qingdao.
Europe
Throughout Q1 2025, the propylene oxide (PO) market in Europe followed a mixed trend. January saw a slight price increase driven by strengthened feedstock propylene costs and restocking activity following the holiday season. Tightness in supply, including planned maintenance at LyondellBasell's sites, supported price sentiment despite subdued demand from construction and coatings sectors. In February, prices remained stable as moderate supply disruptions, such as the Shell Moerdijk force majeure, balanced weak downstream consumption. However, high energy costs, stagnant industrial output, and cautious procurement strategies limited upward momentum. By March, PO prices declined notably as demand from downstream polyurethane and polyether polyol sectors softened further, weighed down by weak construction activity and falling industrial orders. The permanent shutdown of the PO11 unit at Maasvlakte and rising Asian import competition underscored structural pressures in the region. Additionally, prolonged port congestion in Hamburg and the threat of U.S. chemical tariffs added to logistical and market challenges. Propylene oxide prices in Germany closed Q1 2025 at USD 1,435/MT FOB Hamburg.
For the Quarter Ending December 2024
North America
Throughout Q4 2024, the propylene oxide (PO) market in North America exhibited mixed dynamics, with prices declining in October and November before increasing slightly in December. In the USA, the market saw the most significant price changes. October's decline was driven by disruptions from Hurricane Francine, which caused temporary plant shutdowns and a drop in downstream demand from sectors like polyols and propylene glycol. Weak industrial activity and cautious purchasing behavior added to the bearish sentiment.
November extended the downward trend as feedstock propylene prices softened and inventory levels remained elevated. Subdued demand from the construction sector, coupled with logistical constraints, limited market recovery.
However, December saw a slight price increase as the automotive sector provided support, with robust vehicle sales boosting demand for propylene glycol and polyurethane foams. Global supply constraints from plant shutdowns in Asia and Europe further tightened availability, aiding the upward momentum. Ending the quarter, the price for propylene oxide in the USA was recorded at USD 1,558/MT FOB Louisiana, reflecting mixed demand patterns and supply constraints.
APAC
Throughout Q4 2024, the propylene oxide (PO) market in the Asia-Pacific (APAC) region exhibited varied trends, with prices declining in October and stabilizing through November and December. In Japan, the market saw the most significant price changes, with October's decline driven by weak downstream demand from the polyols and propylene glycol sectors, impacted by sluggish construction and automotive activity. Oversupply exacerbated by production increases across Northeast Asia and declining feedstock propylene costs further pressured prices. By November, the market stabilized as producers balanced inventories and adopted cautious production strategies to prevent oversupply. Demand from downstream sectors showed slight improvement but remained generally subdued, with end-users taking a conservative procurement approach. In December, PO prices held steady, reflecting a bearish sentiment influenced by seasonal slowdowns in construction, particularly in northern Japan. High inventories and restrained demand from key sectors like polyols and propylene glycol continued to weigh on market momentum. Ending the quarter, the price for propylene oxide in Japan was recorded at USD 1,011/MT FOB Osaka, reflecting the overall stability amid muted demand and balanced supply conditions.
Europe
Throughout Q4 2024, the propylene oxide (PO) market in Europe experienced mixed trends, with prices declining in October and November before increasing in December. In the Netherlands, the market saw the most significant price changes. October's decline was driven by weak downstream demand from sectors such as polyols and propylene glycol, impacted by a slowdown in construction and high energy costs. November extended this bearish sentiment as feedstock propylene prices dropped, and production adjustments kept inventory levels manageable, though market sentiment remained cautious. However, December saw a rebound in prices due to improved demand from the automotive sector, with strong vehicle sales driving increased consumption of propylene glycol and polyurethane foams. While the construction sector continued to struggle with high borrowing costs and seasonal slowdowns, the automotive industry's resilience helped offset some of the market's weaknesses. Producers focused on balancing output with demand while navigating higher energy costs, maintaining cautious inventory management. Ending the quarter, the price for propylene oxide in the Netherlands was recorded at USD 1,451/MT FOB Rotterdam, reflecting demand recovery from the automotive sector amidst persistent construction challenges.
