propylene oxide Pricing Assessment

Markets Covered:

United States

Saudi Arabia

Netherlands

India

Korea

Belgium

Germany

China

Propylene Oxide Price Trend, Analysis and Forecast

As of July 2024, Propylene Oxide (PO) prices in Saudi Arabia fluctuated around USD 1,063 per metric ton, reflecting a 2.03% decrease from USD 1,085 in June. In Q1 2024, prices averaged USD 1,151 per metric ton, marking a slight decline of 1.82% to USD 1,130 in Q2. This trend was influenced by mixed demand across key sectors, particularly automotive and construction.

Throughout Q1 and Q2, the global Propylene Oxide supply faced significant challenges due to maintenance shutdowns at essential production facilities, which led to output reductions. Additionally, geopolitical tensions in Europe disrupted the availability of crucial feedstocks for PO production, tightening the market and contributing to price pressures.

In Q3 2024, the Propylene Oxide market in Saudi Arabia will likely experience ongoing price pressure due to stable demand from the automotive and construction sectors. As the economy continues to recover, the need for PO as a key ingredient in polyurethane production and other applications is projected to remain strong. However, supply chain constraints and rising feedstock costs for propylene may limit availability. Additionally, regulatory trends favouring sustainable materials could enhance PO’s market position, ensuring sustained demand.

Looking ahead to Q4 2024 and beyond, anticipated expansions in production capacity within the region will likely help stabilize prices. However, the market is expected to remain volatile through 2030, influenced by geopolitical developments, supply chain adjustments, and evolving demand dynamics. Stakeholders will need to navigate these complexities to manage pricing strategies and investments effectively in the Saudi market.

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Track 's propylene oxide price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in propylene oxide prices

Israel-Hamas Conflict (2023-Present): The ongoing conflict has disrupted trade routes and supply chains in the Middle East, impacting the availability and costs of raw materials essential for Propylene Oxide production globally.

Russia-Ukraine Conflict (2022-Present): This ongoing war has severely disrupted production and supply chains across Europe, particularly affecting countries like Belgium and the Netherlands, leading to increased costs and heightened global price volatility for Propylene Oxide.

Global Energy Price Volatility (2021-2022): Fluctuations in crude oil and natural gas prices, particularly in the U.S. and Europe, directly affected the production costs of Propylene Oxide, resulting in periodic price adjustments.

Texas Winter Storm (2021): Severe winter weather in the U.S. caused production halts at key facilities, impacting the supply of Propylene Oxide. This event led to temporary spikes in prices due to supply constraints.

COVID-19 Pandemic (2020): The pandemic initially resulted in a sharp decline in demand; however, as economies reopened, demand surged in sectors such as automotive and construction, significantly impacting Propylene Oxide prices.

Environmental Regulations and Protests (2019-Present): Stricter environmental regulations in various countries, along with protests against industrial pollution, have affected production capabilities and increased compliance costs, contributing to price increases for Propylene Oxide.

Geopolitical Tensions and Trade Wars (2018-2019): Trade tensions, particularly between the U.S. and China, introduced uncertainty in global supply chains, affecting the import and export dynamics for Propylene Oxide and contributing to price instability.

These events underscore the Propylene Oxide market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Methodology and Specifications

propylene oxide Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: aggregates real-time pricing data from various sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures our assessments reflect the most current market conditions for Propylene Oxide.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users across major Propylene Oxide production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire Propylene Oxide supply chain, from raw material availability (e.g., propylene) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: continuously monitors global geopolitical developments, such as conflicts or trade disputes, that can significantly impact Propylene Oxide prices. Our analysis considers potential disruptions to supply chains and their immediate and long-term effects on pricing.

Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on Propylene Oxide production facilities, particularly in vulnerable regions. These events are factored into our price forecasts and supply outlooks.

Economic Shifts: evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., automotive, construction), to predict shifts in Propylene Oxide demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global Propylene Oxide production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to accurately assess current supply availability.

Future Capacity Projections: Our research includes detailed forecasts of upcoming Propylene Oxide production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps predict future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: provides in-depth analysis of demand trends across key sectors, including automotive and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global Propylene Oxide pricing, including shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: utilizes advanced econometric models to forecast Propylene Oxide prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions, including best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that delivers the most accurate, timely, and actionable Propylene Oxide pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

58.0791

CAS No

75-56-9

HS Code

29102000

Molecular Formula

CH3CHCH2O

propylene oxide

Propylene Oxide is a versatile, colourless liquid used in the production of various chemicals, including polyurethane foams, propylene glycol, and solvents. Known for its high reactivity, it plays a key role in the manufacturing of automotive parts, insulation materials, and plastics. Propylene Oxide is also utilized in the pharmaceutical and cosmetic industries for its antimicrobial properties. With its excellent stability and low toxicity, it is widely used in applications that require strong bonding and flexible materials. Its versatility and performance make it essential across multiple industries.

Packaging Type

Iso tanks, Drums (India)

Grades Covered

Industrial Grade (≥ 99.5%)

Incoterms Used

FOB China, FOB USA, FOB Saudi Arabia, FOB Netherlands, FOB South Korea, FD Germany (Netherlands), CIF Nhava Sheva (Saudi Arabia), FD Belgium (Netherlands), CIF Shanghai (South Korea, Saudi Arabia)

Synonym

2-methyloxirane, 1,2-Propylene Oxide, methyl ethylene oxide

Quotation Terms:

25-28 MT (Global), 10-15 MT (India)

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Property	Values	Unit
Appearance	Colourless transparent liquid
Colour	10	Pt-Co
Acetic Acid	0.006	%
Water Content	0.05	%
Ethanal + propanal	0.02	%
Propylene Oxide	99	%

Applications

Propylene Oxide is a versatile compound with a wide range of applications across various industries. It serves as a key raw material in the production of polyurethanes, essential for manufacturing insulation materials, flexible foams, and automotive components. Its unique properties make Propylene Oxide invaluable in personal care products, including cosmetics and skin care formulations, where it enhances texture and performance. In the construction industry, Propylene Oxide is incorporated into adhesives, sealants, and coatings, improving flexibility and durability. Its application in construction materials enhances the longevity of products, making them more resilient to environmental factors. The automotive sector utilizes Propylene Oxide in lightweight composite materials, contributing to improved fuel efficiency and reduced emissions, thereby supporting the industry’s sustainability goals. Additionally, Propylene Oxide plays a crucial role in the production of surfactants for water treatment processes, where it helps formulate effective flocculants that remove impurities. The textile industry benefits from Propylene Oxide in finishes that enhance fabric performance and appearance. With the growing demand for sustainable products, Propylene Oxide is increasingly used in developing bio-based materials and environmentally friendly alternatives, highlighting its importance in both industrial and consumer markets.

Disclaimer

Propylene Oxide price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for propylene oxide. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence the pricing of propylene oxide? +

The pricing of propylene oxide is influenced by several factors, including raw material costs, particularly the prices of propylene and other feedstocks. Market demand from key industries such as polyurethane production, automotive, and construction also plays a significant role. Additionally, geopolitical events, supply chain disruptions, and changes in production capacity can create price volatility. Understanding these factors is essential for procurement heads to make strategic purchasing decisions.

How can I effectively negotiate propylene oxide prices with suppliers? +

To effectively negotiate propylene oxide prices, procurement heads should conduct thorough market research to understand current pricing trends and gather multiple supplier quotes. Building strong relationships with suppliers can lead to better terms and potential discounts. Consider negotiating long-term contracts to lock in favourable prices and be open to discussing flexible payment terms or bulk purchasing options. Demonstrating a commitment to a long-term partnership can also incentivize suppliers to offer competitive pricing.

Are there seasonal variations in the pricing of propylene oxide I should be aware of +

Yes, there are seasonal variations in the pricing of propylene oxide that procurement heads should consider. Demand fluctuations during peak production seasons in industries like construction and automotive can lead to price increases. Additionally, maintenance schedules at production facilities may temporarily reduce supply, affecting prices. Monitoring these seasonal trends and planning purchases accordingly can help you secure better pricing and maintain supply stability throughout the year.