Propylene Oxide Price Trends and Forecast Report 2025 Edition

The Expert Market Research pricing report on Propylene oxide provides insights into the top 10 leading trading countries and regions.

In 2024, propylene oxide prices declined initially across all regions due to weak industrial demand, high inventories, and oversupply. North America and Europe saw slight recoveries in December driven by stronger automotive demand. Asia-Pacific markets remained mostly stable after early-quarter declines, with cautious production balancing supply. In Q1 2025, global propylene oxide (PO) prices showed a mixed trend across regions. North America faced weather-related disruptions and cautious downstream demand, while Asia saw pressure from oversupply and seasonal slowdowns. Europe experienced limited price movement due to supply constraints and weak industrial activity.

It is a common chemical intermediate in the chemical industry, used mainly to produce materials such as polyether polyols and propylene glycol. The produced materials are further utilized in many industries including the manufacture of polyurethane foam, lubricants, detergents, food, and drugs. POX is also applied in fumigating foods and staining tissues for electron microscopy.

Propylene Oxide Price Forecast

Based on the trends seen in 2024, the Propylene Oxide (PO) market outlook is likely to see a slow and cautious recovery in 2025. Last year was marked by weak demand, especially from key sectors like polyurethanes and polyols, along with cautious buying and oversupply as large production units came back online. In early 2025, prices stayed under pressure due to low demand and steady supply. But there is a possibility that prices will strengthen during the second quarter when seasonal demand increases and supply marginally tightens. Events like the post-Ramadan trade rebound and improving activity in end-user industries might help lift market sentiment. Going forward, the propylene oxide price trends will mostly depend on how well the supply is balanced with the pace of demand recovery. Buyers and sellers will need to stay alert to regional market changes and adjust their strategies accordingly.

Global Trade and Supply Chain Implications

The worldwide trade and supply chain dynamics of propylene oxide capture a dynamic interaction of regional interruptions, inventory management practices, and changing downstream demand. During 2024, supply-side restrictions like Asian and European plant outages, weather-related disruptions such as Hurricanes Beryl and Francine in the US, greatly affected output and availability, resulting in trade flow volatility.

Large stocks across Asia and tame downstream demand in building and automobile applications which supported slow buying and moderated export impetus, as was oversupply of North American feedstock propylene which kept curbing pricing further. In contrast, however, tight supplies within Europe and Asia as well as plant slows reduced the availability for export outside those regions and supported the advance in local pricing, altering balances in regional trades. Broader macroeconomic factors affecting propylene oxide price forecast indicate a growing focus on localized supply chains, flexible inventory control, and responsive pricing models as PO producers and customers adapt to shifting geopolitical, climatic, and economic conditions on international trade.

Feedstock Analysis

Propylene oxide pricing analysis are affected by changes in propylene availability and price, as well as general market conditions. In the Asia-Pacific, PO prices declined because of oversupply and poor downstream demand, with feedstock propylene prices weakening in the face of high inventories and higher production capacity. In North America, PO prices decreased because of surplus supply and lower export depressing the market, despite stable feedstock propylene costs. In Europe, PO prices showed a mixed trend, first rising on account of tightened feedstock propylene costs and restocking and then falling as downstream sector demand weakened and energy prices were sustained high. In general, the PO market was affected by oversupply, poor demand, and volatility in feedstock costs causing muted pricing and risk-averse procurement practices region-wide.

Demand and Supply Outlook for Propylene Oxide

The global propylene oxide market is under pessimistic market conditions driven by oversupply, weak demand across key regions of Asia-Pacific, Europe, and North America and limited support from feedstock costs. Recent capacity expansions in China by utilizing hydrogen peroxide propylene oxide (HPPO) and co-oxidation (CHP are expected to further increase supply, thereby sustaining downward pressure on prices. Seasonal and structural conditions like slowdowns in European residential building construction, and sluggish polyurethane demand in North America are also placed in the spotlight as contributing to the soft market sentiment. Also, financial losses reported by major PO producers like LyondellBasell and Dow reinforce the expectation of continued market challenges.

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