Track Propylene Oxide Price Chart Historical and Forecast

Executive Summary

The global Propylene Oxide (PO) market experienced sustained price pressure through 2025, shaped by weak downstream demand, elevated inventories, and fluctuating feedstock propylene costs. Across North America, Asia Pacific, and Europe, quarterly price indices declined in most regions, reflecting subdued procurement behavior from polyurethane and polyether polyol industries, ongoing construction slowdowns, and persistent oversupply conditions.

While short-lived price stabilization occurred during periods of restocking, maintenance outages, or logistical disruptions, these factors were largely insufficient to offset structural demand weakness. Production cost trends eased in multiple quarters as feedstock propylene softened alongside crude oil benchmarks, reducing cost support for producers. Looking ahead, Propylene Oxide price forecasts suggest limited upside potential, with volatility driven primarily by inventory corrections, selective plant shutdowns, seasonal restocking cycles, and feedstock dynamics rather than demand-led recovery.

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Introduction

Propylene Oxide is a critical intermediate chemical used extensively in the production of polyether polyols, polyurethane foams, coatings, and specialty chemicals. As a result, its pricing dynamics are closely linked to construction activity, automotive manufacturing, industrial coatings, and broader macroeconomic conditions.

Throughout 2025, the Propylene Oxide market faced a challenging operating environment. Weak construction activity across major economies, cautious procurement strategies by downstream consumers, and ample feedstock availability resulted in persistent downward pressure on prices. At the same time, logistical disruptions, plant outages, and trade-flow constraints introduced short-term volatility, preventing a uniform price trajectory across regions.

Global Propylene Oxide Price Overview

Globally, Propylene Oxide prices trended lower on a quarterly basis through most of 2025. North America experienced sharper price corrections compared to Europe, while Asia Pacific markets remained heavily influenced by oversupply and new capacity additions.

Key global themes included elevated inventories, subdued export demand, conservative buyer behavior, and declining production costs linked to weaker propylene feedstock pricing. Although selective supply disruptions temporarily tightened availability, these were counterbalanced by muted downstream offtake and limited export arbitrage opportunities.

Quarterly Propylene Oxide Price Snapshot

Region Quarter Ending Price Index Trend QoQ Average Price USD/MT

North America Sep 2025 Down 4.45% 1281.00

North America Dec 2025 Down 7.34% 1187.00

APAC Japan Sep 2025 Down 7.06% 1422.00

APAC Japan Dec 2025 Down 5.32% 1346.33

Europe Germany Sep 2025 Down 0.57% 1403.67

Europe Germany Dec 2025 Down 3.75% 1351.00

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Regional Market Analysis

North America Propylene Oxide Market

In the United States, the Propylene Oxide Price Index declined consistently across 2025, with sharper drops recorded toward the end of the year. For the quarter ending December 2025, prices fell by 7.34 percent quarter over quarter, driven by weak downstream demand and surplus feedstock availability. Average prices settled near USD 1187 per metric ton on an FOB Louisiana basis.

Spot prices remained largely rangebound through December as holiday-related demand softness, cautious trading activity, and limited spot cargo availability restricted market movement. Elevated inventories and weak export flows weighed heavily on seller sentiment, although announced plant closures introduced short-term volatility by tightening near-term regional availability.

Production cost trends edged higher briefly when propylene feedstock rallied, but this was not sustained. Marginal producers faced profitability pressure, while buyers continued to defer procurement due to conservative demand outlooks in polyurethane and polyol sectors.

Earlier in the year, particularly during the quarter ending September 2025, prices declined by 4.45 percent quarter over quarter as inventories remained elevated and plant restarts eased prior tightness. Despite occasional restocking attempts, the absence of supply disruptions limited any sustained price recovery.

Asia Pacific Propylene Oxide Market

In Asia Pacific, particularly Japan, the Propylene Oxide market remained under pressure throughout 2025. The Price Index fell by 5.32 percent quarter over quarter in the December 2025 period, with average prices reported near USD 1346.33 per metric ton. Inventory overhangs prompted sellers to offer discounts in order to clear stockpiles, while downstream buyers maintained a defensive procurement stance.

Lower propylene feedstock costs weakened the production cost trend, further eroding price support. Export softness, closed arbitrage windows, and subdued regional demand contributed to declining competitiveness. While selective maintenance at major plants offered brief supply-side support, continuity at most production facilities maintained ample availability.

During the quarter ending September 2025, prices fell by 7.06 percent quarter over quarter as rising availability following plant restarts outpaced already weak downstream demand. Pre-holiday stocking cycles briefly lifted activity, but inventory liquidation resumed once procurement needs were met.

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Europe Propylene Oxide Market

The European Propylene Oxide market experienced a comparatively moderate decline, though sentiment remained bearish for most of the year. In Germany, prices fell by 3.75 percent quarter over quarter in December 2025, with average prices near USD 1351 per metric ton on an FOB basis. Elevated inventories, port congestion, and muted export inquiries constrained spot buying and liquidity.

Production cost trends eased as feedstock propylene and crude benchmarks softened, reducing producer pricing power. Although regional outages reduced availability at times, these were offset by weak construction activity and declining coatings demand.

In the quarter ending September 2025, prices declined marginally by 0.57 percent as oversupply conditions persisted. Port congestion at Hamburg amplified inventory accumulation, while cautious buyers avoided forward commitments due to economic uncertainty and limited demand visibility.

Historical Quarterly Review

Across Q1 and Q2 2025, Propylene Oxide markets globally followed a mixed but generally downward trajectory. Early-year restocking and temporary feedstock tightness provided short-lived price support, particularly in January. However, these gains were reversed by February and March as downstream demand softened and oversupply concerns intensified.

Q2 2025 saw continued pressure across regions, with Asia particularly affected by new capacity additions and elevated utilization rates. Europe experienced brief price firmness in June due to logistical disruptions and automotive-linked demand, while North America remained constrained by weak construction activity.

Production and Cost Structure Insights

Propylene Oxide production economics in 2025 were heavily influenced by feedstock propylene pricing and crude oil trends. Falling propylene prices lowered variable costs, compressing margins and limiting producers' ability to defend pricing. Energy costs and logistics remained manageable in most regions, further reducing upward price pressure.

Plant shutdowns and maintenance events introduced episodic volatility but did not materially alter the overall supply-demand balance due to ample regional capacity.

Procurement Behavior and Outlook

Buyers across all regions adopted conservative procurement strategies throughout 2025. High inventories, uncertain demand visibility, and expectations of further price softness encouraged delayed purchasing and hand-to-mouth buying.

Looking ahead, procurement outlooks suggest continued caution into early 2026. Seasonal restocking and selective maintenance may offer temporary support, but sustained recovery will depend on downstream demand normalization and inventory drawdowns rather than supply-side constraints alone.

Propylene Oxide Price Forecast

Propylene Oxide price forecasts point toward limited upside with intermittent volatility. Mild recoveries may emerge during restocking periods or when unplanned outages reduce availability. However, persistent oversupply, weak construction-linked demand, and soft feedstock costs are expected to cap any sustained upward movement in the near term.

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Frequently Asked Questions

Why did Propylene Oxide prices fall in 2025

Prices declined due to weak downstream demand, elevated inventories, oversupply conditions, and easing production costs from lower feedstock propylene prices.

Which region saw the steepest price decline

North America experienced the sharpest declines, particularly in late 2025, driven by surplus feedstock availability and weak export demand.

How did feedstock costs impact PO pricing

Lower propylene prices reduced production costs, weakening cost support and allowing sellers to accept lower offers to clear inventories.

What is the near-term outlook for PO prices

The outlook remains cautious, with limited upside and price movements largely dependent on inventory corrections, maintenance cycles, and feedstock volatility.

How ChemAnalyst Supports Propylene Oxide Buyers

ChemAnalyst provides comprehensive, real-time intelligence across the global Propylene Oxide value chain. Buyers benefit from weekly price updates, regional price indices, and transparent spot and contract benchmarks.

In addition to pricing data, ChemAnalyst delivers forward-looking forecasts, production cost analysis, and plant shutdown tracking to help procurement teams anticipate market movements. With on-ground coverage across major global ports and industrial hubs, ChemAnalyst enables buyers to optimize purchasing strategies, manage supply risks, and stay competitive in volatile market conditions.

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This release was published on openPR.