Propylene Prices Index: Trend, Chart, News, Graph and Demand
In the first quarter of 2025, the North American propylene market displayed a fluctuating price trajectory, initially experiencing a rise followed by a correction. January saw a price increase driven by heightened global demand ahead of the Lunar New Year and constrained domestic availability. This short-term bullish sentiment helped push quarterly prices in the U.S. up by 2.2% compared to the previous quarter. However, the upward trend was short-lived. By February, prices began to retreat amid falling crude oil values, prompting manufacturers to adjust their offers downward. Improving inventory levels and the relaxation of earlier supply chain disruptions further contributed to the softening of the market. Entering March, bearish pressure persisted due to market uncertainty stemming from evolving trade policies and potential tariffs. While there were intermittent gains in downstream polypropylene prices, these failed to stimulate sustained demand. Buyers remained cautious, particularly in the textile and polyester industries, where purchasing activity was subdued due to excess stock and a lack of forward visibility.
In the Asia-Pacific region, propylene prices followed a similar trajectory of early gains followed by subsequent declines. At the beginning of January, prices in Thailand rose due to constrained supply from South Korea and elevated feedstock crude oil costs that inflated production expenses. Despite this bullish start, gains were tempered by weak demand from the downstream polypropylene segment. On a quarterly basis, propylene prices in Thailand climbed 3.7% compared to the fourth quarter of 2024. However, February brought a slowdown as the Lunar New Year holidays disrupted business activity. Operating rates in the downstream sector declined, crude oil prices softened, and production costs eased. While supply conditions improved slightly thanks to reduced freight costs and stable export levels from South Korea, demand remained sluggish. By March, the market continued to struggle under the weight of poor demand from the polypropylene and polyester sectors and broader macroeconomic concerns, including uncertain trade dynamics and potential tariff implementations.
Get Real time Prices for propylene : https://www.chemanalyst.com/Pricing-data/propylene-51
In Europe, propylene prices surged by 11.1% during the first quarter of 2025 when compared to the last quarter of 2024, driven largely by supply-side constraints rather than robust demand. The German market, in particular, saw continuous price increases throughout the quarter. These gains were fueled by ongoing production disruptions, logistical challenges, and rerouting of shipments that tightened availability. In January, the situation was exacerbated by planned and unplanned plant shutdowns, low operational rates across the polymer and petrochemical sectors, and minimal cracker activity. February was marked by worsening logistical issues, including vessel shortages and port congestion in key hubs such as Hamburg, which further hindered the free flow of materials. Despite subdued consumption from downstream polypropylene users, the constrained supply environment helped sustain upward price momentum. By March, prices in Germany reached USD 1053/MT for Propylene FD Hamburg, reflecting the ongoing supply pressure and limited inventory levels.
In the Middle East and Africa (MEA), the propylene market followed an overall upward trend in Q1 2025, with prices rising 2.9% from the previous quarter. January witnessed an uptick in trading activity in Saudi Arabia, driven by restocking efforts in preparation for the Lunar New Year. However, market sentiment remained cautious amid shifting demand patterns, geopolitical instability, and seasonal considerations. Supply was further strained due to maintenance shutdowns at major production sites, including NATPET and Petro Rabigh. Tensions in the region, particularly disruptions in the Red Sea shipping lanes, led to increased freight costs and delays, adding upward pressure to prices. By March, though, the market began to cool. Demand from key downstream sectors such as polypropylene and polyester weakened, and the approach of Ramadan contributed to reduced market activity, shorter business hours, and subdued buying behavior. Although February experienced a brief rise in demand driven by seasonal expectations, it fell short of projections, and market fundamentals failed to sustain any significant upward momentum.
In South America, propylene prices recorded a mixed pattern over the first quarter of 2025. January began with an uptick, particularly in Brazil, fueled by a combination of strong global demand leading up to the Lunar New Year and limited domestic supply. As a result, prices increased by 5.9% over the quarter when compared with the last quarter of 2024. However, this positive trend was reversed as crude oil prices softened, prompting a reduction in propylene offers by local producers. Improvements in supply chain efficiency and inventory availability added to the bearish outlook. By March, market sentiment had weakened further due to growing concerns about international trade regulations and possible tariff impositions, which created an atmosphere of hesitation among buyers. Although there was a temporary rise in prices for downstream polypropylene, it failed to generate a corresponding increase in demand. The textile and polyester industries continued to face sluggish activity, as customers refrained from large-scale procurement amid ongoing inventory overhangs and market instability.
Get Real time Prices for propylene : https://www.chemanalyst.com/Pricing-data/propylene-51
Contact Us:
ChemAnalyst
GmbH - S-01, 2.floor, Subbelrather Straße,
15a Cologne, 50823, Germany
Call: +49-221-6505-8833
Email: [email protected]
Website: https://www.chemanalyst.com