Propylene Glycol Price Trend Report: Index, Forecast, and Demand Growth

Propylene Glycol Price Trends and Market Analysis in Q2 2025

Introduction

Propylene Glycol (PG), an essential intermediate in pharmaceuticals, cosmetics, food, and industrial applications, has experienced noticeable shifts in global pricing trends during the second quarter of 2025. The market has been influenced by a confluence of factors, including fluctuating demand across key downstream industries, inventory positions, raw material availability, and regional consumption patterns.

During Q2 2025, the three major regional markets—North America, Asia-Pacific (APAC), and Europe—showed divergent trajectories in Propylene Glycol prices. While the North American market witnessed a decline, largely due to subdued international demand and high stockpiles, APAC recorded a gradual rise in prices, supported by consistent downstream activity. Europe, meanwhile, displayed resilience with a mild uptick, driven by marginally improved demand fundamentals.

This article explores the detailed pricing trends, demand and supply dynamics, and broader market implications for Propylene Glycol Pharma and Industrial Grades across North America, APAC, and Europe.

North America: Weak Demand and Inventory Overhang Pressuring Prices

Price Performance in Q2 2025

In North America, the Propylene Glycol Pharma Grade Price Index stood at USD 1484/MT in April 2025. This marked a significant downturn compared to previous quarters, highlighting challenges within the regional market. The decline was primarily attributed to weak international demand, particularly from export destinations, alongside elevated inventory levels in domestic storage.

Despite stable production rates among key manufacturers, sluggish consumption in end-user segments such as pharmaceuticals, personal care, and food-grade applications weighed on prices. The oversupply situation further prevented any meaningful recovery throughout the quarter.

Demand Dynamics

Pharmaceutical demand, a traditionally stable segment, was subdued in Q2. Seasonal demand fluctuations, combined with cautious procurement strategies by buyers, left suppliers with excess stocks. The dietary supplement sector also underperformed due to reduced consumer spending amid broader economic pressures.

Exports from North America were particularly underwhelming. The competitive pricing environment in Asia and the relatively firmer market in Europe meant U.S. suppliers struggled to capture overseas market share, limiting opportunities for price recovery.

Supply-Side Developments

Producers in North America maintained steady operating rates, but some adopted temporary production rationalization strategies to balance inventories. However, the persistent mismatch between supply and demand limited the effectiveness of these measures. Feedstock propylene availability remained adequate, but falling demand for Propylene Glycol offset any potential cost support from raw materials.

🌐 Get Real Time Prices for Propylene Glycol: https://www.chemanalyst.com/Pricing-data/propylene-glycol-1095

Market Sentiment

Market sentiment in North America was bearish throughout Q2 2025. Buyers delayed procurement activities, expecting further price corrections, which exacerbated the downward momentum. Distributors also engaged in aggressive discounting to move volumes, reinforcing the decline.

Overall, the North American Propylene Glycol market closed the quarter under pressure, with Pharma Grade spot values struggling to recover amid oversupply and waning global interest.

Asia-Pacific (APAC): Steady Price Growth on Stable Demand

Price Performance in Q2 2025

The Asia-Pacific market, with Singapore as a key pricing hub, witnessed a steady upward trend in Propylene Glycol prices during Q2 2025. Prices increased from USD 1073/MT in April to USD 1132/MT in May, and further to USD 1163/MT in June.

This upward trajectory reflected consistent downstream demand from pharmaceuticals, food, cosmetics, and industrial applications. Improved consumption patterns, particularly in China and Southeast Asia, underpinned the positive price momentum.

Demand Drivers

In APAC, Propylene Glycol demand was supported by robust activity in the personal care and cosmetics sectors, where formulations required stable PG supply. Pharmaceutical-grade demand also held firm, bolstered by ongoing investments in drug manufacturing and healthcare supply chains across China and India.

Additionally, the food industry contributed to demand growth, particularly for Propylene Glycol as a humectant, preservative, and solvent in processed foods and beverages. With rising consumer spending in emerging Asian economies, this segment provided reliable demand.

Supply Landscape

Regional producers maintained moderate operating rates, with supply aligning closely to consumption trends. Unlike North America, APAC did not suffer from severe inventory overhangs, and producers successfully managed stock levels to support pricing.

Feedstock propylene prices in Asia showed some volatility due to crude oil fluctuations, but downstream resilience helped offset potential cost pressures. Singapore’s position as a transshipment hub also enabled efficient balancing of supply between domestic and export markets.

Export Competitiveness

Asian suppliers enjoyed an advantage in terms of cost structure, enabling them to capture stronger export opportunities compared to North American producers. Exports to Middle Eastern and African countries expanded, offering an outlet for surplus volumes.

Market Outlook

The APAC Propylene Glycol market is expected to maintain its strength in the near term, supported by steady demand across diversified end-use sectors. Pricing stability, coupled with strong regional consumption, makes APAC a pivotal driver of global PG trends.

Europe: Mild Price Improvement on Firmer Demand

Price Performance in Q2 2025

In Europe, the Propylene Glycol Industrial Grade market recorded a modest increase in April 2025, with the FOB Rotterdam Price Index rising by 0.33% to USD 1522/MT. While the growth was not dramatic, it reflected an encouraging stabilization after earlier periods of volatility.

The slight upward momentum was underpinned by mild improvements in downstream demand, particularly from the industrial and construction sectors, which use PG in applications such as antifreeze, de-icing fluids, and unsaturated polyester resins (UPR).

Demand and Consumption Trends

European buyers demonstrated cautious optimism in Q2 2025. Though purchasing activity was moderate, it was sufficient to support a firmer spot market. Seasonal demand from the construction industry—where PG-derived resins are used—played a role in boosting consumption.

In the food and pharmaceutical sectors, demand remained steady but unspectacular, reflecting broader economic headwinds in the European Union. Nonetheless, the market avoided the severe downturn seen in North America.

Supply and Raw Materials

European producers benefitted from relatively balanced supply-demand conditions. Production rates were aligned with downstream requirements, limiting excessive inventory build-ups. Feedstock propylene prices in Europe were moderately stable, ensuring predictable cost dynamics.

FOB Rotterdam spot values reflected competitive positioning, with European suppliers gaining some traction in regional and global trade. Exports to North Africa and parts of Asia also supported the market.

Market Sentiment

While sentiment in Europe was cautiously optimistic, buyers still exercised prudence in procurement, preferring short-term contracts to hedge against potential volatility. Nonetheless, the presence of stable demand streams kept prices marginally firmer compared to other regions.

Comparative Regional Analysis

Diverging Price Trends

• North America: Experienced sharp declines due to oversupply, weak international competitiveness, and sluggish demand.
• APAC: Recorded consistent growth, supported by robust downstream activity and effective supply-demand balancing.
• Europe: Achieved mild gains, reflecting incremental improvements in industrial demand and stable supply conditions.

These divergent trends underscore how regional economic conditions, consumption patterns, and trade dynamics shape Propylene Glycol pricing differently across markets.

Demand Fundamentals

APAC emerged as the strongest demand hub, driven by diverse end-use applications and expanding middle-class consumption. North America faced weaker fundamentals, with both domestic and export markets underperforming. Europe maintained moderate demand, offering a more balanced picture.

Supply Positioning

North America struggled with inventory overhang, while APAC showcased efficient stock management. Europe’s balanced production rates allowed it to avoid significant market imbalances.

Trade Competitiveness

Asian producers enjoyed a cost advantage that enabled them to expand exports, while North American suppliers lost ground internationally. Europe leveraged its proximity to neighboring export destinations to stabilize its position.

Key Market Drivers in Q2 2025

1. Feedstock Propylene Prices
   Crude oil and propylene fluctuations impacted cost structures, but regional demand conditions dictated final pricing outcomes.
2. Downstream Demand Variability
   Pharmaceuticals, cosmetics, food, and industrial applications contributed unevenly across regions, shaping pricing trends.
3. Inventory Management
   Overhang in North America pressured values, while APAC and Europe managed inventories effectively to support prices.
4. Global Trade Dynamics
   Shifting export opportunities, competitive cost structures, and regional demand differentials influenced global PG price movements.

Outlook for Q3 2025

Looking ahead, the Propylene Glycol market is expected to remain regionally fragmented:

• North America may continue to face bearish conditions unless demand recovers or producers cut output more aggressively. Export competitiveness will be key to alleviating domestic oversupply.
• APAC is likely to sustain its positive momentum, with stable growth in end-use industries ensuring steady price support.
• Europe could see further mild improvements, especially if industrial activity strengthens in the second half of the year.

Global uncertainty surrounding crude oil, shipping costs, and macroeconomic performance will also play crucial roles in shaping Q3 pricing outcomes.

Conclusion

The Propylene Glycol market in Q2 2025 reflected a complex interplay of regional supply-demand imbalances, trade competitiveness, and sectoral demand variability. North America experienced sharp declines due to oversupply and weak demand, while APAC demonstrated consistent growth fueled by resilient consumption across industries. Europe, meanwhile, managed to hold steady with mild price gains, supported by stable industrial activity.

These contrasting regional narratives underscore the importance of localized market conditions in influencing global commodity trends. As the industry enters Q3 2025, stakeholders will closely monitor inventory strategies, feedstock dynamics, and international trade flows to anticipate price movements and manage procurement effectively.

🌐 Get Real Time Prices for Propylene Glycol: https://www.chemanalyst.com/Pricing-data/propylene-glycol-1095

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