US Spot Petrochemical Prices Decline Amid Waning Export Demand

US Petrochemical Prices Soften Amid Weaker Export Demand

US spot petrochemical prices declined across the board last week as export demand for the plastics building blocks appears to weaken for the month of June. The softening prices suggest that appetite for US petrochemicals has cooled following months of elevated pricing. Weaker export demand for June appears to be driving the current softening, according to traders.

Spot ethylene fell by almost 17%, sliding for a third straight week. This decline is notable, as ethylene is a key feedstock used to make polyethylene plastics found in packaging and consumer goods. Polymer-grade propylene, or PGP, dropped about 8% in its fourth consecutive week of declines or unchanged pricing. PGP is a feedstock for polypropylene used in automotive parts, textiles, and containers.

The recent uptick in shipments spurred by the war in Iran had previously boosted export demand for low-cost US feedstocks and plastic resins. US petrochemical prices had surged as the conflict disrupted global oil and chemical trade flows. However, the current softening suggests that the initial boost in demand has subsided.

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US Gulf Coast ethylene exports climbed to about 83,000 barrels a day in May, the most shipments in 2026, and a 46% increase from April loadings, according to analytics firm Kpler. Despite the increase in shipments, US feedstocks remain relatively competitive. Prices for key input material ethane ended the week slightly higher at about 21 cents a gallon.

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