What is Propylene Oxide
Analysts Sentiment
Bullish
28.7%
Neutral
29.5%
Bearish
41.8%
What's driving sentiment this week:
Past Week (2026-06-01 to 2026-06-07) — Sentiment: Neutral
Global refinery activity and propane/propylene inventory levels remained stable through May 29, maintaining a neutral supply environment on June 3.
Polyol and polyurethane demand fluctuations caused a mixed and cautious tone for propylene oxide end-use activity through June 1.
OPEC’s modest 188,000 bpd quota increase announced June 7 softened supply tightness expectations and lowered propylene feedstock cost pressures.
This Week (2026-06-08 to 2026-06-14) — Outlook: Neutral
Propylene oxide markets remain balanced as steady feedstock supply and uncertain demand conditions offset each other.
The June 10 EIA Weekly Petroleum Status Report (expected) will provide crucial data on refinery operations and propane/propylene stocks influencing near-term production.
A surprise shift in refinery utilization or unexpected feedstock cost spikes could quickly destabilize current market equilibrium.
Key Market Impact
Stable upstream feedstock availability and modest OPEC adjustments have kept production costs and price pressure in check recently.
Market participants are likely maintaining cautious purchasing and production strategies, awaiting fresh signals from upcoming inventory and macro data releases.
How About the Price?
Price Trajectory 2020–2026 (Brief Recap)
Phase 1 — Stable Start (2020): Prices remained steady at around $1205.0 per ton as no significant supply or demand events were recorded in the influence logs.
Phase 2 — Gradual Increase (2020 to mid-2026): The price rose by $365 to reach $1570.0 per ton by June 2026, without any recorded specific influencing factors driving the change according to the influence log.
Supply-side factors
- No specific supply-side factors recorded in the influence log during 2020–2026.
Demand-side factors
- No specific demand-side factors recorded in the influence log during 2020–2026.
Substitutes & Alternatives
| Substitute / Alternative | Replacement Scenario / How It Substitutes |
|---|---|
| Ethylene Oxide (EO) | In polyether polyol synthesis, ethylene oxide can partially or fully replace propylene oxide to produce polyethylene glycols (PEGs) or EO-capped polyols. EO-based polyols yield polyurethanes with different hydrophilicity and mechanical properties. Substitution requires reformulation of the polyol recipe and adjustment of catalyst systems; not a drop-in replacement but widely practiced in flexible foam and surfactant applications. |
| Glycerol (from biodiesel co-production) | Glycerol can substitute propylene glycol (a key PO derivative) in certain applications such as antifreeze formulations, cosmetics, and food-grade humectants. Since glycerol is a direct functional analog to propylene glycol in many non-critical uses, this substitution reduces demand for PO-derived propylene glycol. It is largely a drop-in replacement at the downstream level, not at the PO synthesis stage. |
| Butylene Oxide (1,2-Epoxybutane) | Butylene oxide can replace propylene oxide in the synthesis of polyether polyols and lubricant additives where longer alkyl chain length is acceptable or desirable. It provides higher hydrophobicity and different viscosity profiles. Substitution requires reformulation and is used in specialty lubricant and surfactant applications rather than bulk polyurethane foam. |
| Epichlorohydrin | In epoxy resin synthesis, epichlorohydrin is the standard epoxide used with bisphenol A. For certain flexible epoxy or reactive diluent applications where propylene oxide-derived glycidyl ethers are used, epichlorohydrin-based analogs can substitute, though they introduce chlorine into the product and require different handling protocols. |
| Propylene Glycol (PG, bio-based) | Bio-based propylene glycol produced directly from glycerol hydrogenolysis or from lactic acid can substitute PO-derived propylene glycol in downstream markets such as antifreeze, de-icing fluids, cosmetics, and food additives, effectively bypassing PO entirely in those value chains. This is a downstream substitution that reduces net PO demand rather than replacing PO in synthesis. |
| Styrene Oxide | In specialty chemical and pharmaceutical intermediate applications where propylene oxide is used as a chiral epoxide building block or reactive diluent, styrene oxide can serve as an alternative epoxide reactant. Substitution is application-specific and requires evaluation of reactivity and toxicity profiles; not applicable to bulk polyol or glycol markets. |
| Trimethylolpropane (TMP) / Polyester Polyols | In polyurethane formulations, polyester polyols (derived from diacids and diols, not from PO) can replace polyether polyols as the polyol component. This substitutes PO indirectly by using an entirely different polyol chemistry. Polyester polyols offer better solvent resistance and are preferred in coatings and adhesives, but require reformulation of the polyurethane system and are generally more expensive. |
Regulatory Status
| Region | Regulation / Policy Name | Issuing Authority | Year (enacted or latest revision) | Key Requirement / Threshold | Source |
|---|---|---|---|---|---|
| EU | REACH Regulation (EC) No 1907/2006 | ECHA | 2006 (amended) | Subject to restrictions of Annex XVII (manufacture, placing on market and use of certain dangerous substances); listed as SVHC for authorisation; harmonised CLP classification: Flam. Liq. 1, Carc. 1B, Muta. 1B, Acute Tox. 3 (inhalation), Acute Tox. 4 (oral), Eye Irrit. 2 | https://balchem.com/wp-content/uploads/2024/11/10235gb_CLP_134_ATP8_0102_propyleenoxide_balchem.pdf; https://echemportal.org/echemportal/substance-search?query_term=75-56-9 |
| EU | REACH Regulation (EC) No 1907/2006 | ECHA | 2006 (amended) | Registration required for ≥1 tonne/year; Candidate List of SVHC for authorisation (Article 59); not listed in Annex XIV authorisation list | https://health.ec.europa.eu/other-pages/health-sc-basic-page/opinion-results-risk-assessment-0_en; https://chem.echa.europa.eu/obligation-lists/candidateList |
| EU | CLP Regulation (EC) No 1272/2008 (harmonised classification) | ECHA | 2008 (harmonised) | Harmonised CLP classification: Flam. Liq. 1; Carc. 1B; Muta. 1B; Acute Tox. 3; H331; H311; H302; Eye Irrit. 2; STOT SE 3; H335 | https://balchem.com/wp-content/uploads/2024/11/10235gb_CLP_134_ATP8_0102_propyleenoxide_balchem.pdf |
| US | TSCA Section 4(a) Testing Requirements | US EPA | 1985 | Manufacturers and processors required to test for developmental toxicity | https://www.epa.gov/assessing-and-managing-chemicals-under-tsca/federal-register-notice-propylene-oxide-testing |
| US | EPCRA Section 302/304/313 (EHS chemicals) | US EPA | 1986 | EHS: TPQ 10,000 lbs; RQ 100 lbs; TRI reporting required | https://cameochemicals.noaa.gov/chemical/5159 |
| US | NESHAP for HAPs (40 CFR 61) | US EPA | 1990 | Listed as HAP; stationary source emissions controls apply (no specific PO emission threshold specified) | https://balchem.com/wp-content/uploads/2025/02/SDS_ARC_Propylene-Oxide-ARC.pdf |
| US | OSHA PEL (Table Z-1) | OSHA | 1971 (current) | 8-hour TWA: 100 ppm (240 mg/m³); STEL: 200 ppm | http://www.osha.gov/chemicaldata/590; https://www.osha.gov/annotated-pels/table-z-1 |
| US | DOT Hazardous Materials Regulations | DOT (via 49 CFR) | 1970s (current) | UN 1280; Class 3; Packing Group I; Hazard Class 3; Flammable Liquid | https://www.lyondellbasell.com/globalassets/lyb/our-solutions/products/documents/chemicals-technical-literature/guidelines-for-the-distribution-of-propylene-oxide.pdf; https://balchem.com/wp-content/uploads/2024/11/10235gb_CLP_134_ATP8_0102_propyleenoxide_balchem.pdf |
| US | EPA HAP Emissions Standards | US EPA | 1990 (NESHAP) | Highly flammable handling: listed as HAP with emission controls required for stationary sources | https://ww2.arb.ca.gov/sites/default/files/classic/toxics/tac/factshts1997/propylox.pdf |
| China | National Development and Reform Commission Catalogue | National Development and Reform Commission | 2023 (amended) | Ban on new chlorohydrin-based PO production (older plants closures encouraged due to environmental controls) | https://chemicalmarketanalytics.com/insights/potential-ban-of-po-chlorohydrin/; https://www.nexanteca.com/blog/technological-independence-chinas-propylene-oxide-industry |
| China | MEE Environmental Compliance (NDRC/Restructuring Guidance) | Ministry of Ecology and Environment (MEE) | 2015 (ongoing) | Prohibition on construction of new chlorohydrin plants since 2015; closures of older PO plants due to wastewater/emissions crackdowns | https://www.nexanteca.com/blog/technological-independence-chinas-propylene-oxide-industry |
| Global | IMDG Code | IMO (adopted regionally) | 2000s (current) | UN 1280; Class 3; Packing Group I; no marine pollutant mark | https://balchem.com/wp-content/uploads/2024/11/10235gb_CLP_134_ATP8_0102_propyleenoxide_balchem.pdf |
| Global | GHS Classification | UN (adopted) | 2005 (CLP alignment) | Flam. Liq. 1; Acute Tox. 3/4; Carc. 1B; Muta. 1B; Eye Irrit. 2; STOT SE 3 | https://balchem.com/wp-content/uploads/2024/11/10235gb_CLP_134_ATP8_0102_propyleenoxide_balchem.pdf |
Key Influence Events
Propylene oxide (PO), also known as 1,2-epoxypropane or methyloxirane, is a colorless, volatile, flammable liquid with a molecular formula of C3H6O and a molecular weight of 58.08 g/mol. It is a highly reactive three-membered cyclic ether (epoxide) produced industrially from propylene. Propylene oxide is one of the most important propylene derivatives, serving primarily as a chemical intermediate for the manufacture of polyether polyols (used in polyurethane foams), propylene glycols, propylene glycol ethers, and isopropanolamines. It has a boiling point of 34.2°C and is miscible with most organic solvents. Due to its high reactivity and low boiling point, it is handled and stored under pressure or refrigeration.
Top Countries Production Capacity
Production Process of Propylene Oxide
Propylene oxide (PO), also known as 1,2-epoxypropane or methyloxirane, is a colorless, volatile, flammable liquid with a molecular formula of C3H6O and a molecular weight of 58.08 g/mol. It is a highly reactive three-membered cyclic ether (epoxide) produced industrially from propylene. Propylene oxide is one of the most important propylene derivatives, serving primarily as a chemical intermediate for the manufacture of polyether polyols (used in polyurethane foams), propylene glycols, propylene glycol ethers, and isopropanolamines. It has a boiling point of 34.2°C and is miscible with most organic solvents. Due to its high reactivity and low boiling point, it is handled and stored under pressure or refrigeration.
Specs & Grades
| Property | Typical Value / Range | Unit | Grade / Note |
|---|---|---|---|
| Purity (Propylene Oxide) | ≥ 99.5 | wt% | Polymer / Polyol Grade |
| Purity (Propylene Oxide) | ≥ 99.8 | wt% | High-Purity / Specialty Grade |
| Water Content | ≤ 100 | ppm wt | Polymer Grade |
| Water Content | ≤ 50 | ppm wt | High-Purity Grade |
| Acidity (as acetic acid) | ≤ 10 | ppm wt | Polymer Grade |
| Aldehydes (as acetaldehyde) | ≤ 100 | ppm wt | Polymer Grade |
| Aldehydes (as acetaldehyde) | ≤ 30 | ppm wt | High-Purity Grade |
| Chlorinated Compounds (as Cl) | ≤ 5 | ppm wt | Polymer Grade |
| Color (APHA) | ≤ 5 | APHA units | All Grades |
| Boiling Point | 34.2 | °C | Pure Compound |
| Density at 20°C | 0.826 – 0.830 | g/cm³ | All Grades |
| Refractive Index (nD20) | 1.3660 – 1.3680 | — | All Grades |
| Flash Point (closed cup) | -37 | °C | All Grades |
| Non-volatile Residue | ≤ 5 | ppm wt | High-Purity Grade |
Who are the Top Players?
| Company | Headquarters | Key Facilities |
|---|---|---|
| Dow Chemical | Midland, Michigan, USA | Freeport TX, Map Ta Phut, Thailand, Stade, Germany |
| LyondellBasell Industries | Houston, Texas, USA | Channelview TX, Bayport TX, Pasadena TX, Foss-sur-Mer, France, Botlek, Netherlands, Tarragona, Spain |
| Shell | The Hague, Netherlands | Geismar LA, USA, Wesseling, Germany, Bukom, Ghana, Huizhou, China |
| BASF | Ludwigshafen, Germany | Antwerp, Belgium, Geismar LA, USA |
| Wanhua Chemical | Yantai, Shandong, China | Penglai Industrial Park, Shandong, China |
| SABIC | Riyadh, Saudi Arabia | Jubail, Saudi Arabia |
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