During the third quarter of 2025, the global Polypropylene Glycol (PPG) market showed a generally downward trend, reflecting weaker demand across several key industries. The PPG price trend declined by around 2–3% compared to the previous quarter, mainly due to reduced consumption in sectors like polyurethane foams, coatings, lubricants, and plasticizers. While supply remained stable, demand did not grow as expected, which created pressure on prices across most regions.

PPG is widely used in industries such as automotive, construction, pharmaceuticals, and chemicals. Because of this, its demand is closely tied to overall industrial activity. In Q3 2025, slower economic momentum and cautious business sentiment led to reduced purchasing, which directly impacted PPG Prices.

Global Market Overview

The global PPG price trend during Q3 2025 reflected a soft market environment. One of the main reasons behind this trend was oversupply, particularly from major producers in Asia. At the same time, demand from downstream industries remained weak, which resulted in excess inventory in many markets.

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Interestingly, feedstock costs such as propylene remained relatively stable, and energy prices did not show major fluctuations. However, despite stable production costs, prices still declined due to low demand and ongoing inventory destocking.

Many buyers chose to reduce their existing stock instead of placing new orders. This cautious approach limited market activity and kept prices under pressure throughout the quarter.

Key Factors Influencing PPG Prices

Several important factors shaped the PPG price trend during this period.

First, demand from end-use industries was weaker than expected. Industries like automotive and construction, which are major consumers of PPG, experienced slower production and lower consumption levels.

Second, oversupply in the market added pressure on prices. Producers continued to operate at stable levels, but without strong demand, this led to an imbalance between supply and demand.

Third, rising freight costs played a role in shaping regional pricing trends. While feedstock prices remained stable, increased transportation costs affected overall market dynamics and influenced trade flows.

Finally, global economic uncertainty also impacted market sentiment. Businesses were cautious with spending and avoided bulk purchasing, which further reduced demand for PPG.

Regional Insights

Asia

Asia remained a key region influencing the global PPG price trend. In South Korea, PPG Prices declined by about 1.42% during Q3 2025. The drop was mainly due to weaker demand from automotive and coatings industries. Even though production levels were stable, oversupply and rising freight costs contributed to the price decline. Prices continued to move downward in September, reflecting ongoing market softness.

Thailand also saw a decline of around 1.00% in PPG Prices. Reduced demand from automotive and chemical industries played a major role in this trend. Despite stable production, the presence of excess supply kept prices under pressure. September prices remained weak, showing no strong recovery.

India and Australia

In India, PPG Prices decreased slightly by about 0.39% during Q3 2025. The market was impacted by reduced demand from pharmaceuticals and coatings sectors. Global supply chain disruptions and rising freight costs also influenced the price trend. In September, prices remained low due to weak demand and cautious buying behavior.

Australia experienced a smaller decline of around 0.13%. Demand from coatings and chemical sectors remained relatively stable, but overall market softness and logistics challenges led to a slight decrease in prices. The market remained mostly stable in September, with only minor fluctuations.

Europe

Germany stood out as one of the few regions where PPG Prices increased during Q3 2025. Prices rose by about 0.97%, supported by steady demand from pharmaceutical and coatings industries. Higher feedstock costs and increased transportation expenses also contributed to the price rise.

In September, prices in Germany continued to move upward, reflecting strong demand and relatively tight supply conditions. This made Europe slightly more stable compared to other regions, although overall growth remained moderate.

Middle East and Turkey

In Saudi Arabia, PPG Prices declined by approximately 1.85% during the quarter. Weak demand from automotive and coatings sectors, along with supply chain challenges, contributed to the decline. Prices remained under pressure in September, following the global trend.

Turkey experienced one of the sharper declines, with prices falling by about 2.04%. Reduced industrial activity and weaker demand from key sectors led to this drop. Rising freight costs also added to the pressure. Prices continued to decline in September, reflecting ongoing market weakness.

North America

In the United States, PPG Prices saw a notable decline of around 3.00% during Q3 2025. This was one of the largest drops among major regions. The decrease was driven by slower demand from automotive and chemical industries, along with ongoing supply chain disruptions.

In September, prices remained low as demand continued to be weak. The market showed signs of uncertainty, with buyers holding back on large purchases and waiting for clearer signals.

Market Sentiment

The overall sentiment in the PPG market during Q3 2025 was cautious. Buyers across regions focused on managing their existing inventory rather than placing new orders. This behavior reduced overall demand and kept prices under pressure.

Producers, on the other hand, maintained stable production levels, ensuring sufficient supply in the market. However, without strong demand, this steady supply contributed to oversupply conditions.

Outlook for Q4 2025

Looking ahead, the PPG price trend may show some recovery in Q4 2025, but this will largely depend on demand from key industries. Sectors such as automotive and construction will play a crucial role in determining future price movements.

If industrial activity improves and demand picks up, PPG Prices may stabilize or even increase slightly. However, if demand remains weak and oversupply continues, prices may stay under pressure.

Feedstock costs and freight rates will also influence the market. Any significant changes in these factors could impact pricing trends in the coming months.

Conclusion

In summary, the PPG price trend in Q3 2025 reflected a soft global market with declining prices across most regions. Weak demand, oversupply, and cautious buying behavior were the main reasons behind the downward trend.

While some regions like Germany showed slight growth, the overall market remained under pressure. PPG Prices were influenced more by demand conditions than production costs, highlighting the importance of industrial activity in shaping the market.

As the market moves into Q4 2025, the focus will be on demand recovery and supply adjustments. The direction of PPG Prices will depend on how these factors evolve in the coming months.