Propylene Oxide Price Trend and Forecast 2026-2027

Propylene Oxide prices in Germany, the highest-cost reporting region, rose 5.6% in Q2 2026 to USD 1,580.00/MT from USD 1,496.00/MT in Q1, after a sharp 10.7% jump in Q1 alone as Middle East tensions lifted crude and propylene feedstock costs across Europe. The United States moved in the opposite direction entirely, with prices falling 7.3% in Q1 to USD 1,187.00/MT before stabilizing with a modest 1.9% rebound to USD 1,210.00/MT in Q2, as weak downstream demand and surplus domestic feedstock pulled the market lower even as the rest of the world tightened. Globally, the average rose from USD 1,227.75/MT in Q1 to USD 1,279.25/MT in Q2, a 4.2% gain. For H2 2026, a global average of USD 1,220.00-1,380.00/MT is expected, with this unusual regional split likely to persist.

Propylene Oxide, commonly abbreviated PO, is a reactive epoxide produced from propylene through either the chlorohydrin process or newer peroxide-based routes, serving as the key intermediate for polyether polyols used in polyurethane foams, propylene glycol, and various surfactants. Its largest end use, polyurethane foam, feeds into construction insulation, automotive seating, furniture, and appliances, making demand closely tied to housing and vehicle production cycles. Propylene feedstock costs, which have diverged sharply between regions amid recent geopolitical shipping tensions, regional plant outages and maintenance schedules, and downstream polyurethane and surfactant demand are what drive prices in this market.

Propylene Oxide Price Forecast for 2026

The outlook for Propylene Oxide through H2 2026 points to a continuation of the unusual regional split seen through the first half of the year. Germany and Japan should stay firm as Middle East-linked feedstock cost pressure persists, while the United States looks likely to see only a gradual recovery given its surplus domestic feedstock position and comparatively weak downstream construction and housing demand.

The main upside risk is a further escalation of Middle East shipping tensions, which would push European and Asian feedstock costs even higher. The main downside risk is a faster-than-expected recovery in US housing and construction activity, which could tighten the domestic market more quickly than currently expected and narrow the unusual regional price gap.

For the Quarter Ending June 2026

Propylene Oxide Prices Q2 2026:

• Germany: USD 1,580.00/MT
• Japan: USD 1,230.00/MT
• United States: USD 1,210.00/MT
• China: USD 1,165.00/MT

Propylene Oxide Prices in Germany

German Propylene Oxide prices averaged USD 1,580.00/MT in Q2 2026, up 5.6% from USD 1,496.00/MT in Q1, extending the sharp feedstock-driven gains seen earlier in the year.

Why did the price of Propylene Oxide change in Q2 2026 in Germany?

Middle East tensions kept crude and propylene feedstock costs elevated, and rerouted shipping continued raising freight and insurance premiums, keeping landed costs high across the German and broader European market.

Propylene Oxide Prices in Japan

Japanese prices averaged USD 1,230.00/MT in Q2 2026, up 5.5% from USD 1,166.00/MT in Q1, as supply tightening continued supporting the market.

Why did the price of Propylene Oxide change in Q2 2026 in Japan?

Regional maintenance and unexpected outages continued reducing export availability across Asia, tightening spot supply and prompting sellers to maintain firm offers even as the pace of gains moderated slightly from Q1's sharper move.

Propylene Oxide Prices in the United States

US Propylene Oxide prices averaged USD 1,210.00/MT in Q2 2026, up a modest 1.9% from USD 1,187.00/MT in Q1, a partial stabilization after the sharp Q1 decline driven by weak demand and surplus feedstock.

Why did the price of Propylene Oxide change in Q2 2026 in the United States?

Easing feedstock propylene costs and rising domestic inventories reduced immediate cost pressure, though short-term tightness from outages and cautious buying supported a modest rebound after the steep first-quarter correction.

Propylene Oxide Prices in China

Chinese prices averaged USD 1,165.00/MT in Q2 2026, up 4.0% from USD 1,120.00/MT in Q1, continuing a gradual recovery from the oversupplied conditions that had characterized 2025.

Why did the price of Propylene Oxide change in Q2 2026 in China?

Improving downstream demand from polyether polyol and polyurethane manufacturers, combined with the broader Asian supply tightening, continued lifting Chinese prices out of the prior year's oversupplied conditions.

For the Quarter Ending March 2026

Propylene Oxide Prices Q1 2026:

• Germany: USD 1,496.00/MT
• Japan: USD 1,166.00/MT
• United States: USD 1,187.00/MT
• China: USD 1,120.00/MT

Propylene Oxide Prices in Germany

German prices jumped 10.7% in Q1 2026 to USD 1,496.00/MT from USD 1,352.00/MT in Q4 2025, driven by sharp feedstock cost increases tied to Middle East tensions.

Why did the price of Propylene Oxide change in Q1 2026 in Germany?

Middle East tensions lifted crude and propylene prices, increasing production costs and supporting firmer offers, while rerouted shipping increased freight and insurance premiums, raising landed costs across the European market.

Propylene Oxide Prices in Japan

Japanese prices surged 11.4% in Q1 2026 to USD 1,166.00/MT from USD 1,047.00/MT in Q4 2025, driven by regional supply tightening.

Why did the price of Propylene Oxide change in Q1 2026 in Japan?

Regional maintenance and unexpected outages reduced export availability across Asia, tightening spot supply significantly and prompting seller firmness even as rerouted shipping added further cost pressure.

Propylene Oxide Prices in the United States

US prices fell sharply, down 7.3% in Q1 2026 to USD 1,187.00/MT from USD 1,281.00/MT in Q4 2025, reflecting weak downstream demand and surplus feedstock even as the rest of the world tightened.

Why did the price of Propylene Oxide change in Q1 2026 in the United States?

The March correction followed easing feedstock propylene costs and rising domestic inventories, which reduced immediate cost pressure even though geopolitical tensions had pushed crude prices higher earlier in the quarter; logistics remained functional, limiting any disruption-driven premium domestically.

Propylene Oxide Prices in China

Chinese prices rose 4.2% in Q1 2026 to USD 1,120.00/MT from USD 1,075.00/MT in Q4 2025, as the market began recovering from 2025's persistent oversupply.

Why did the price of Propylene Oxide change in Q1 2026 in China?

Marginally improving downstream demand, combined with the broader tightening seen across the Asian supply chain, began reversing the persistent oversupply that had weighed on Chinese prices through most of 2025.

Quarterly Propylene Oxide Price Trends

Global Propylene Oxide prices moved only modestly through most of 2025 before diverging sharply by region in early 2026, with Germany and Japan surging on Middle East-linked feedstock and freight cost pressure even as the United States moved in the opposite direction on weak domestic demand and surplus supply, an unusual split that continued into Q2.

What was Propylene Oxide Price in 2025?

Propylene Oxide told a genuinely divergent story across 2025 and into 2026. Germany and Japan posted firm annual gains as feedstock costs and regional supply tightening built through the year, while the United States saw an outright annual decline as weak downstream demand and ample domestic feedstock kept that market under persistent pressure.

Propylene Oxide Prices in Germany in 2025

German prices firmed from about USD 1,250.00/MT in Q1 2025 to USD 1,352.00/MT by Q4, a gain of roughly 8.2%, the strongest annual increase of the four regions, before the even sharper Q1 2026 feedstock-driven jump.

Propylene Oxide Prices in Japan in 2025

Japanese prices firmed from about USD 980.00/MT in Q1 2025 to USD 1,047.00/MT by Q4, up roughly 6.8%, as regional supply conditions gradually tightened through the year.

Propylene Oxide Prices in the United States in 2025

US prices declined from about USD 1,350.00/MT in Q1 2025 to USD 1,281.00/MT by Q4, down roughly 5.1%, the only region among the four to post a negative annual figure, as weak downstream demand and ample domestic feedstock supply weighed on the market throughout the year.

Propylene Oxide Prices in China in 2025

Chinese prices declined from about USD 1,100.00/MT in Q1 2025 to USD 1,075.00/MT by Q4, down roughly 2.3%, as persistent oversupply and weak seasonal demand kept this market under pressure for most of the year before recovering into 2026.

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Expert Market Research: Your Source for Real-Time Propylene Oxide Price Intelligence

Expert Market Research tracks Propylene Oxide prices continuously across every major producing and consuming region, combining propylene feedstock cost data, regional plant outage and maintenance schedules, and polyurethane and surfactant demand signals into a single, regularly updated view of the market. Our team can help your procurement function benchmark current offers, plan purchases around the unusual regional divergence covered in this report, and build a defensible view of where this essential polyurethane intermediate is headed next. Reach out to our team for a tailored briefing or a deeper look at any of the regional markets covered here.