Chemicals, Crude Oil, NGLs, Olefins
September 29, 2026
September US propylene CP settles down 2 cents/lb on month: sources
Editor:
HIGHLIGHTS
Contract prices fall amid high inventories
Spot PGP prices were mixed on the month
Weak downstream demand limits buyer activity
US chemical companies have agreed to a September contract price for polymer-grade propylene of 43 cents/lb, down 2 cents on the month, market sources directly involved in the settlement process confirmed Sept. 29.
Additionally, the contract price for chemical-grade propylene also dropped 2 cents/lb at 41.50 cents/lb for September.
Contract price discussions consider spot price movements throughout the month. Spot PGP had mixed movements during September, with an overall increase of 0.625 cent/lb, according to spot prices published by Platts, S&P Global Energy.
This was impacted by a price increase in PGP to 40 cents/lb on Sept. 15, as the market reacted to upstream crude and propane price increases.
However, market participants agree that more factors are pushing prices down than up. With all the on-purpose production for PGP running, inventories remain high, while demand from downstream markets is weak.
"The only bids out there are storage ones right now," said an olefins trader earlier in the month.
A propylene buyer agreed, saying that PGP has not been reacting to crude oil volatility, in part due to the current elevated inventory levels.
Platts is part of S&P Global Energy.
