Why did the Propylene Oxide Price Change in July 2025? The Propylene Oxide (PO) Price Index in the U.S. trended consistently lower in Q2 2025, with only a brief rise in early April on tightening inventories, followed by steady declines through May and June as weak demand and surplus supply drove bearish sentiment.

The propylene oxide prices in the United States for Q4 2023 reached 1305 USD/MT in December. The market was stable initially but fell as the quarter progressed due to lower feedstock propylene costs and weak energy prices. Additionally, despite subdued construction demand, commercial construction saw a rise in polyurethane procurement. Consumer spending remained robust, particularly in pharmaceuticals, driven by rising healthcare prices. Towards the quarter’s end, prices increased slightly due to higher shipping costs.

Propylene Oxide Prices December 2023

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Get the latest insights on price movement and trend analysis of Propylene Oxide in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

In February 2025, the average propylene oxide export price amounted to $1,176 per ton, surging by 7.8% against the previous month.

Why did the Propylene Glycol Price Change in July 2025? The Price Index for Propylene Glycol Pharma Grade stood at USD 1484/MT in April 2025, reflecting a sharp decline due to weak international demand and elevated inventories.

The Indian propylene oxide market soared to $51M in 2024, rising by 17% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a resilient increase from 2012 to 2024: its value increased at an average annual rate of +7.9% over the last twelve-year period.

Propylene oxide prices dropped 7–11% YoY in Q4 2024; prices are likely to stay low with gradual recovery expected in late 2025.

In February 2025, the average propylene oxide import price amounted to $949 per ton, dropping by -4.1% against the previous month.

The upstream raw material propylene oxide price decreased throughout the second quarter in the North American region. The polypropylene Glycol price declined due to the region's reduced raw materials.

Get the latest insights on price movement and trend analysis of Propylene Glycol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

During the first quarter of 2025, the propylene glycol prices in the USA reached 1560 USD/MT in March. The demand for propylene glycol from sectors including food processing, cosmetics, and pharmaceuticals has moderated, with buyers exercising caution in the face of inflationary worries and economic uncertainty. Prices are impacted by this poor demand picture, especially since many purchasers chose to use their current inventory rather than place new purchases.

Explore IMARC’s newly published report, titled “Propylene Glycol Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2025 Edition,” offers an in-depth analysis of propylene glycol pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

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Propylene Oxide Market Size 2024-2028

The propylene oxide market size is forecast to increase by USD 6.24 billion at a CAGR of 4.72% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for polyurethane, a primary application of propylene oxide. The global automotive industry's expansion is another key growth factor, as propylene oxide is extensively used in the production of automotive parts. However, environmental and regulatory concerns are posing challenges to the market's growth. 
Strict regulations regarding the emission of volatile organic compounds (VOCs) from paints and coatings and propylene oxide production are limiting its usage in certain applications. Additionally, the market is witnessing a shift towards the use of alternative chemicals due to their lower environmental impact. To mitigate these challenges, market participants are investing in research and development of eco-friendly production methods and alternative applications.

What will be the Size of the Propylene Oxide Market During the Forecast Period?

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The market is a significant segment of the global petrochemical industry, primarily used in the production of polyurethane foam and polyethers. PO is derived from propylene, a byproduct of refineries that process petroleum and natural gas. The manufacturing process of PO involves passing propylene through steam crackers, which results in the formation of PO through a series of chemical reactions. PO is a versatile chemical intermediate, with applications extending beyond foam production to include the synthesis of propylene glycols and polyether polyols. These materials are integral to the production of various polyurethane products, such as flexible and rigid foams, used in industries ranging from automotive to bedding and furniture.
The PO market dynamics are influenced by various factors, including raw material availability and prices, technological advancements, and regulatory frameworks. The competitive structure of the market is characterized by a few large players and numerous small and medium-sized enterprises. Qualitative and quantitative research methods are employed to analyze market trends and forecast future growth. PO is used In the production of a wide range of petrochemical products, including polyurethanes, which are essential components of jet fuel, gasoline, and diesel. Despite its importance, the PO market faces challenges, including increasing competition and the need for continuous innovation to meet evolving customer demands and regulatory requirements.

How is this Propylene Oxide Industry segmented and which is the largest segment?

The propylene oxide industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Polyether polyols
  Propylene glycols
  Glycol ethers
  Others


End-user

  Automotive
  Building and construction
  Textile and furnishing
  Others


Geography

  APAC

    China
    India
    Japan


  North America

    US


  Europe

    Germany


  Middle East and Africa



  South America

By Application Insights

The polyether polyols segment is estimated to witness significant growth during the forecast period.

Propylene oxide (PO) is a crucial chemical intermediate used In the production of polyether polyols. These polyols, formed through the reaction of PO with polyfunctional alcohols, are integral to the creation of polyurethane foams. The construction industry relies heavily on these foams for insulation applications due to their thermal insulation properties and energy efficiency. With the emphasis on sustainability and reduced energy consumption, insulation materials have gained significance, propelling the demand for polyether polyols. Additionally, the automotive sector's focus on lightweight materials for fuel efficiency and sustainability will further boost the market for PO derivatives. Applications in advanced polymer manufacturing, adhesives, coatings, automobile cushioning, battery encapsulation, bedding, and various other industries contribute to the market's competitive structure.

Safety concerns and environmental considerations, including potential health effects such as eye and skin irritation, are under constant scrutiny, necessitating adherence to safety standards. The market for propylene oxide and its derivatives is expected to maintain a steady growth trajectory due to its versatile applications and the evolving industry landscape.

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The Polyether polyols segment was valued at USD 12.60 billion in 2018 and showed a gradual increase during the forecast period.

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In September 2022, the propylene oxide price stood at $1,136 per ton (CIF, China), which is down by -7.6% against the previous month.

¿Por qué cambió el precio del óxido de propileno en julio de 2025? El Índice de Precios del Óxido de Propileno (PO) en los EE.UU. tendencia constantemente a bajar en el 2º trimestre de 2025, con sólo un breve aumento a principios de abril en el endurecimiento de los inventarios, seguido de una disminución constante a lo largo de mayo y junio, ya que la demanda débil y la oferta excedente impulsaron el sentimiento oso.

The average price of propylene amounted to some *** U.S. dollars per metric ton in 2023, down from *** dollars per metric ton one year earlier. Production and uses of propylene Propylene, also known as propene, ranks as the second most-consumed primary petrochemical worldwide, only after ethylene. In 2022, propylene accounted for ** percent of the global primary petrochemical consumption. Most of the propylene produced is used to manufacture polypropylene, one of the most common thermoplastic materials used today. The petrochemical compound is also used extensively as a building block to produce diverse chemicals such as isopropyl alcohol, propylene oxide, acrylonitrile, and acrylic acid. In 2020, the global production capacity of propylene stood at *** million metric tons. Polypropylene market The market volume of polypropylene is forecast to follow an increasing trend during the next years, reaching approximately 100 million metric tons by 2029. Similarly, the market value of the compound is expected to increase by more than ** percent in 2029 in comparison with 2021. Similarly to the development of the price of propylene during the last year, the average price of polypropylene in 2023 showed a small decrease in comparison with 2022.

The global propylene market is experiencing robust growth, driven by the expanding demand from diverse downstream applications. While the exact market size for 2025 isn't provided, considering typical market sizes for petrochemicals and a plausible CAGR (let's assume a conservative 4% CAGR based on industry trends), we can estimate the 2025 market value to be around $80 billion USD. This substantial market is propelled by factors such as the increasing production of polypropylene (a major propylene derivative) for packaging, automotive, and construction industries. Further growth is fueled by the rising demand for propylene oxide in the production of polyether polyols, used extensively in polyurethane foams and coatings. The application segments of acrylonitrile, acrylic acid, and cumene also contribute significantly to the market's expansion, driven by their usage in various industries including textiles, adhesives, and plastics. Key players like BASF, Dow Chemical, and ExxonMobil are actively investing in capacity expansion and technological advancements to meet the escalating demand. However, the market faces certain restraints. Fluctuations in crude oil prices, a primary feedstock for propylene production, directly impact profitability. Stringent environmental regulations regarding emissions and waste disposal pose operational challenges for producers. Furthermore, the development of alternative materials and technologies could potentially influence future market growth. Despite these restraints, the positive growth trajectory of the propylene market is expected to continue, with a projected CAGR exceeding 4% from 2025 to 2033. Regional variations are anticipated, with Asia Pacific likely exhibiting the strongest growth due to its booming manufacturing sector and increasing infrastructure development. The competitive landscape is shaped by the presence of both major multinational corporations and regional players, engaging in strategic mergers and acquisitions to enhance their market position and product portfolios. This comprehensive report offers an in-depth analysis of the global propylene market, providing crucial insights into production, consumption, pricing, and future growth prospects. With a focus on key players, emerging trends, and regional variations, this report is an invaluable resource for industry stakeholders seeking to navigate the complexities of this dynamic market. High-search-volume keywords like "propylene market size," "propylene price forecast," "propylene applications," and "propylene producers" are strategically incorporated throughout.

In May 2023, the propylene oxide price amounted to $1,134 per ton (FOB, Thailand), shrinking by -6.3% against the previous month.

In 2024, the Middle Eastern propylene oxide market increased by 89% to $270M, rising for the fifth year in a row after seven years of decline. Over the period under review, consumption continues to indicate a significant increase. Over the period under review, the market hit record highs in 2024 and is expected to retain growth in the near future.

Propylene glycol prices fell to $920/MT in Dec 2024. Explore YoY trends, 2025 forecasts, and supply-demand insights from Expert Market Research.

Propylene Oxide Market Outlook

According to our latest research, the global propylene oxide market size reached USD 19.1 billion in 2024. The market is experiencing steady expansion, driven by robust demand in downstream industries and favorable economic trends. The compound annual growth rate (CAGR) is estimated at 5.3% for the period from 2025 to 2033. By the end of 2033, the propylene oxide market is forecasted to achieve a value of approximately USD 30.3 billion. This growth is primarily fueled by increasing consumption in the polyurethanes sector, rising infrastructure investments, and expanding applications across multiple end-use industries. As per our latest research, the market’s momentum is expected to continue, supported by technological advancements and evolving regulatory frameworks.

The primary growth driver for the global propylene oxide market is the surging demand for polyether polyols, which are essential precursors for polyurethane production. The construction and automotive sectors, in particular, are experiencing significant growth, leading to heightened consumption of polyurethane foams for insulation, cushioning, and structural components. The ongoing trend of urbanization, coupled with infrastructure development projects in emerging economies, is further propelling the demand for propylene oxide. Additionally, the rising focus on energy efficiency and sustainable building materials is boosting the use of polyurethane-based insulation, directly influencing the growth trajectory of propylene oxide consumption worldwide.

Another significant growth factor is the increasing utilization of propylene oxide in the production of propylene glycol, glycol ethers, and flame retardants. Propylene glycol is widely used in the food, pharmaceutical, and cosmetics industries, while glycol ethers serve as solvents in paints, coatings, and cleaning agents. The versatility of propylene oxide as a key chemical intermediate enables its adoption across diverse applications, thereby broadening its market base. Furthermore, the shift towards lighter and more fuel-efficient vehicles is enhancing the demand for polyurethane-based materials in the automotive sector, which, in turn, supports the propylene oxide market’s expansion.

Technological advancements in production processes are also playing a pivotal role in market growth. The industry is witnessing a gradual transition from traditional chlorohydrin and styrene monomer processes to more sustainable and environmentally friendly methods such as the hydrogen peroxide process. These innovations are aimed at reducing environmental impact, improving yield, and minimizing production costs. The adoption of new technologies is particularly pronounced in regions with stringent environmental regulations, such as Europe and North America. As a result, companies are investing in research and development to enhance process efficiencies and meet evolving regulatory standards, thereby ensuring sustained growth for the propylene oxide market.

From a regional perspective, Asia Pacific stands out as the dominant market for propylene oxide, accounting for the largest share of global consumption. The region’s rapid industrialization, expanding construction activities, and burgeoning automotive sector are key contributors to this dominance. China and India, in particular, are witnessing robust demand for polyurethane products, which is directly translating to higher propylene oxide consumption. North America and Europe also represent significant markets, driven by advanced manufacturing capabilities and a strong presence of end-use industries. Meanwhile, Latin America and the Middle East & Africa are emerging as promising regions, with increasing investments in infrastructure and industrial development expected to fuel market growth over the coming years.

Production Process Analysis

The production process segment is central to understanding the dynamics of the propylene oxide market, as it directly impacts cost structures, environmental footprints, and product quality. The chlorohydrin process, historically the most widely used method, involves the reaction of propylene with chlorine and water. While this process is cost-effective and well-established, it generates significant quantities of wastewater and by-products, leading to environmental concerns and regulatory scrutiny. As environmental regulations tighten, particularly in developed markets, the chlorohydrin process is gradually being phased out in favor of more sustainable a