Propylene Price Trend Reflects Mixed Global Market Conditions in Q3 2025

The Propylene Price Trend during the third quarter of 2025 showed noticeable differences across regions, highlighting how local demand, supply conditions, and industrial activity can shape pricing in different ways. Propylene is a widely used chemical, forming the base for products such as polypropylene plastics, packaging materials, automotive components, and various chemical derivatives. Because it is closely tied to industrial performance, changes in propylene prices often reflect broader economic and manufacturing trends.

In Q3 2025, the global propylene market did not move in one clear direction. Instead, prices declined in many regions due to weak downstream demand, while some areas showed signs of balance or mild pressure depending on supply conditions. Overall, the market felt cautious, with buyers taking a careful approach and producers focusing on maintaining steady operations.

Weak Demand Shaped the Global Propylene Price Trend

One of the most important factors influencing the Propylene Price Trend in Q3 2025 was weak demand from key downstream industries. Sectors such as automotive manufacturing, packaging, construction, and consumer goods experienced slower activity, especially in Western markets. When these industries slow down, demand for propylene-based products naturally declines.

As a result, buyers across many regions reduced their purchasing volumes or delayed procurement decisions. This cautious behavior created downward pressure on prices, particularly in markets where supply remained ample.

European Markets Faced Strong Price Pressure

In Europe, the Propylene Price Trend showed a clear downward movement throughout Q3 2025. Countries such as Germany, Belgium, and the Netherlands experienced noticeable price declines as industrial activity remained weak. Construction output slowed, automotive production remained below expectations, and packaging demand failed to recover strongly.

European producers continued operating at steady production levels despite weak demand. This led to oversupply in the market, further pushing prices down. At the same time, high energy costs in Europe limited producers’ flexibility, making it difficult to reduce output significantly.

Because of these conditions, buyers remained cautious. Many opted to purchase only what was necessary, avoiding large inventories. This cautious approach reinforced the downward price trend across the region.

Asia-Pacific Markets Also Saw Softness

The Asia-Pacific region, including countries such as South Korea and India, also experienced downward pressure on the Propylene Price Trend during Q3 2025. Although the reasons varied slightly by country, the main issue remained weak downstream demand.

In many Asian markets, competition increased as multiple suppliers offered material into a market with limited consumption growth. Freight costs also played a role, affecting landed prices and buyer decisions. While freight rates eased slightly in some cases, they still influenced overall pricing dynamics.

South Korea: Balanced Supply but Soft Demand

In South Korea, the Propylene Price Trend showed mild softness during Q3 2025. Prices for polymer-grade propylene on an FOB Busan basis ranged between USD 730 and USD 770 per metric ton. Over the quarter, prices declined by about 1.22%, reflecting a market that was balanced on the supply side but weak on the demand side.

Cracker run rates in South Korea remained stable, with no major production outages reported. This ensured steady availability of propylene in the market. However, demand from downstream sectors such as polypropylene and acrylonitrile remained moderate rather than strong.

In September 2025, prices declined further by nearly 3% compared to the previous month. Buyers remained cautious, especially those from China and Southeast Asia, as industrial activity across the region stayed subdued. Feedstock naphtha prices showed limited movement, offering little support for price recovery.

Overall, the market mood in South Korea was careful and reserved. While supply conditions were stable, demand did not provide enough strength to lift prices.

China: Local Production Influenced Price Direction

China’s Propylene Price Trend during Q3 2025 followed a gradual downward path. CIF Shanghai prices ranged between USD 750 and USD 800 per metric ton, marking a quarterly decline of around 1.49%. This trend was largely driven by weak demand from downstream producers of polypropylene and propylene oxide.

One key factor affecting China’s market was the continued expansion of local PDH (propane dehydrogenation) capacity. As domestic production increased, reliance on imports decreased. This shift toward self-sufficiency reduced buying interest in the import market, keeping prices under pressure.

In September 2025, prices declined further on a month-on-month basis as buyers continued to purchase selectively. Even though some cost advantages existed for processing propylene, downstream consumption remained weak. Importers focused on sourcing from reliable suppliers but avoided building large inventories.

Overall, the Chinese market remained stable but cautious, with supply gradually shifting toward domestic sources and limiting any upward price movement.

North America: Balanced but Soft Conditions

In the United States and North America, the Propylene Price Trend showed moderate weakness during Q3 2025. Export demand softened, and supply levels remained sufficient, creating a somewhat saturated market. These conditions limited price growth across much of the region.

However, there were some localized signs of upward pressure, particularly in areas such as Texas and the Gulf Coast toward the later part of the quarter. These movements were more regional than structural and did not significantly change the overall trend.

Feedstock availability remained steady, and freight costs showed some moderation. These factors helped keep the market balanced, even as demand growth remained limited.

Netherlands: Strong Decline Reflecting European Weakness

The Netherlands saw one of the sharper declines in the Propylene Price Trend during Q3 2025. Prices on an FD Rotterdam basis ranged between USD 840 and USD 930 per metric ton, representing a quarter-on-quarter decline of nearly 8%.

Demand from polymer, resin, and chemical derivative sectors remained weak. Downstream converters operated at reduced rates as construction and automotive activity declined further. In September 2025, prices fell again by over 2% compared to August, continuing the downward trend.

Feedstock naphtha prices remained stable, offering little support for price recovery. At the same time, energy costs stayed high, adding pressure on producers without translating into higher selling prices. Supply remained abundant due to integrated petrochemical operations, keeping the market oversupplied.

Overall Market Sentiment and Conclusion

Across regions, the Propylene Price Trend in Q3 2025 reflected a market shaped by weak demand, steady supply, and cautious buying behavior. While feedstock availability and freight conditions provided some balance, downstream consumption remained the key driver of pricing.

Producers focused on maintaining stable operations, while buyers avoided aggressive procurement strategies. The result was a generally soft but controlled market, without extreme volatility.

In conclusion, the Propylene Price Trend during Q3 2025 highlighted how regional demand differences, supply fundamentals, and industrial activity influence pricing outcomes. While some markets showed sharper declines than others, the overall global mood remained cautious, balanced, and closely tied to downstream performance.