Asia
In Asia, propylene oxide prices exhibited a fluctuating trend during the second half of 2025, influenced by shifting feedstock propylene costs, evolving supply conditions, and cautious downstream demand. In Q3, softer feedstock values and increased upstream capacity initially pressured prices, while subdued procurement from polyether and polyurethane sectors limited recovery. Mid-quarter fluctuations were driven by temporary supply adjustments and restocking activity, with a gradual improvement toward the end of the quarter supported by firmer feedstock trends and better trading sentiment. Entering Q4, prices showed intermittent strength as maintenance activities and higher input costs tightened supply, prompting short-term buying interest. However, these gains were not sustained, as improving operating rates and new capacity additions increased availability. Downstream demand remained largely need-based, particularly from construction-linked segments, restricting strong upward momentum. Overall, the market remained range-bound with periodic volatility, reflecting balanced yet cautious conditions.
Europe
In Europe, the propylene oxide market followed a similar fluctuating trajectory in H2 2025. Stable conditions in Q3, supported by balanced supply and steady downstream demand, transitioned into a more dynamic environment in Q4. Feedstock cost variations and easing supply conditions led to alternating phases of price firming and correction. Buyers maintained conservative purchasing strategies, limiting any sustained upward movement.
North America
In North America, prices displayed a mildly positive yet fluctuating trend across H2 2025. Q3 witnessed gradual stabilization after early weakness, supported by moderate restocking and improved sentiment. In Q4, early supply tightness provided temporary support, but improved availability and restrained downstream demand led to consolidation. Overall, the market reflected balanced fundamentals with cautious trading activity.
Analyst Insight
According to Procurement Resource, Propylene oxide prices are expected to remain stable to slightly firm, supported by steady demand from polyurethane and construction sectors, though fluctuations in feedstock costs may continue to influence short-term movements.