Global Overview of Propylene Oxide Prices

The Propylene Oxide (PO) prices landscape during the quarter ending September 2025 reflected a broadly bearish tone across major global regions, driven by weak downstream demand, elevated inventories, and easing feedstock propylene prices. While regional supply dynamics varied, the overall Propylene Oxide Price Index trended lower in North America, APAC, and Europe, highlighting subdued consumption from construction, polyether polyols, automotive, and industrial coatings sectors.

Across markets, Propylene Oxide spot prices softened, as buyers remained cautious, procurement stayed hand-to-mouth, and sellers faced pressure to clear inventories. The Propylene Oxide price forecast suggests limited upside in the near term, with only modest volatility expected unless unexpected supply disruptions or demand recovery materialize.

North America Propylene Oxide Prices – Q3 2025

USA Propylene Oxide Price Index and Market Performance

In North America, particularly the United States, the Propylene Oxide Price Index declined by 4.45% quarter-over-quarter in Q3 2025. This decline was primarily attributed to weak downstream demand, especially from the construction and polyol segments, which continued to struggle amid high interest rates and delayed infrastructure spending.

The average Propylene Oxide price during the quarter stood at approximately USD 1281.00/MT, according to market analysts. Pricing pressure intensified through July and August as inventories remained elevated and procurement activity stayed muted.

The Propylene Oxide spot price drifted steadily downward throughout the quarter. Gulf Coast sellers faced intensified competition, as ample supply and slow offtake forced producers and traders to offer discounts to move volumes. Elevated inventories, combined with limited export arbitrage opportunities, further constrained pricing power.

Production Cost Trend and Feedstock Influence

The Propylene Oxide production cost trend eased during Q3 2025, largely due to softening feedstock propylene prices, particularly in July. Reduced propylene costs lowered producer cost pressure, but these savings were largely passed through to buyers, reinforcing the downward price movement rather than improving margins.

Demand Outlook and Price Forecast

The Propylene Oxide demand outlook in North America remains weak. Construction activity stayed sluggish, while polyol producers limited restocking due to poor order visibility. As a result, market participants expect limited upside in the absence of supply disruptions.

The Propylene Oxide price forecast points to modest near-term volatility, with small alternating upticks and declines, as plant operating rates normalize but inventories remain comfortable.

APAC Propylene Oxide Prices – Q3 2025

Japan Propylene Oxide Price Index Trends

In the Asia-Pacific (APAC) region, Japan’s Propylene Oxide Price Index fell sharply by 7.06% quarter-over-quarter, reflecting weaker regional demand and ample supply availability. The market faced persistent demand headwinds from construction, automotive, and electronics-related downstream industries.

The average Propylene Oxide price in Japan during the quarter was approximately USD 1422.00/MT, indicating subdued pricing conditions across the region.

Spot Market Conditions and Supply Balance

The Propylene Oxide spot price softened amid ample supply, subdued buying interest, and limited procurement urgency from downstream polyol producers. Buyers remained defensive, purchasing only for immediate needs, while sellers faced challenges in maintaining earlier price levels.

Production Cost and Margin Pressure

The Propylene Oxide production cost trend weakened across APAC as feedstock propylene prices declined, further compressing producer margins. Despite lower costs, producers struggled to stabilize prices due to oversupply and muted demand.

Outages, Inventories, and Price Volatility

The Propylene Oxide Price Index volatility tracked inventory levels and export demand throughout the quarter. While major plant outages temporarily tightened regional supply, these effects were offset by overall ample capacity and plant restarts across Asia, which maintained downward pressure on offers.

Price Forecast and Demand Outlook

The Propylene Oxide price forecast for APAC suggests range-bound movement in the near term, influenced by holiday-related demand lulls, inventory adjustments, and operational disruptions. The demand outlook remains muted, as construction and automotive weakness continues to limit downstream polyol purchases.

Europe Propylene Oxide Prices – Q3 2025

Germany Propylene Oxide Price Index Performance

In Europe, Germany’s Propylene Oxide Price Index declined by 0.57% quarter-over-quarter, marking a relatively mild contraction compared to other regions. The modest decline reflected easing feedstock propylene prices and persistently weak demand fundamentals.

The average Propylene Oxide price in Germany during the quarter was approximately USD 1403.67/MT, assessed on an FOB Hamburg basis.

Spot Price Trends and Logistics Challenges

The Propylene Oxide spot price softened through August, pressured by ample regional supply, port congestion, and muted spot buying activity. Export flows remained constrained, limiting arbitrage opportunities and contributing to inventory accumulation within Europe.

Production Cost Trends and Energy Influence

The Propylene Oxide production cost trend weakened as lower feedstock propylene prices and softer crude oil benchmarks reduced processing cost support. However, these cost reductions did little to stimulate pricing, as demand remained sluggish across key downstream sectors.

Demand Outlook and Inventory Impact

The Propylene Oxide demand outlook in Europe remains subdued, driven by weak construction activity, reduced polyether polyol consumption, and cautious buyer behavior. Rising inventories and constrained exports continued to dampen the Propylene Oxide Price Index, despite occasional short-term restocking attempts.

Price Forecast for Europe

The Propylene Oxide price forecast in Europe anticipates modest seasonal upticks post-holidays, particularly as some European plants resume operations following planned maintenance. However, any recovery is expected to be limited by broader macroeconomic uncertainty.

Global Propylene Oxide Market Outlook

Overall, the Propylene Oxide prices market for the quarter ending September 2025 remained under pressure across regions. Weak demand, comfortable inventories, and easing production costs defined the quarter’s price behavior. While supply-side disruptions and seasonal factors may introduce short-term volatility, market participants broadly expect constrained spot and contract activity in the near term.