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The final week of April 2025 witnessed yet another drop in propylene prices on the US market. Dull demand in the downstream polypropylene industry was the main cause of this decline, which has been going on since early March 2025. Because of a sharp decline in oil prices in previous weeks brought on by a global economic slowdown, manufacturing production costs stayed low despite a recent increase in the price of oil, a crucial feedstock for propylene.

According to our 果酱视频 database, propylene prices in the United States may drop even more in May 2025 due to the anticipated drop in oil prices. In May 2025, global unpredictability brought on by tariffs may encourage a recession and result in a sharp decline in consumer demand.

The fourth week of April 2025 saw a 5% drop in propylene prices in the United States, according to recent assessments. Due to a sharp decline in oil prices in the previous weeks brought on by the global economic slowdown and resulting decreased demand for oil, overall manufacturing costs were low even though the feedstock crude oil prices recovered on April 25.

In the face of low demand and high inventories in the downstream sector, the sharp decline in the price of oil, the main raw material used to produce propylene, significantly reduced manufacturing costs for propylene producers and supported the downward trend in propylene prices.

Additionally, according to EIA data, during the final week of April, propylene inventories rose by 0.6 million barrels. Additionally, a surplus of propylene was produced as a result of the downstream polypropylene sector's decreased consumption. Producers of polypropylene drastically reduced their operating rates due to the ongoing low demand for their products, which in turn reduced their need for propylene feedstock.

Due to participants' caution in the face of continuous uncertainty surrounding global tariff developments, demand has not only increased but also remained low. Limited orders were placed by foreign buyers, indicating ongoing reluctance to purchase propylene from the US.

The downstream polymer sector's demand was muted despite the potentially warmer weather, which usually boosts packaging and textile consumption. Additionally, a number of purchasers expressed hesitation about acquiring propylene for their subsequent production of polypropylene.

Additionally, the downstream plastic weaving sector saw a minor drop in operating rates to 47%, which was indicative of lower order volumes than in prior years. Higher export duties to the US in particular hindered exporters, which led to low profit margins for manufacturers in this industry.