Texas, USA: The US Propylene Carbonate market demonstrated a stable trend in September as the key market components on the supply and demand side were operating in equilibrium. The demand from the downstream polycarbonate and other end-use industries has improved slightly, whereas amid slight improvement in the business operating conditions and the ease in the factory gate deflation in China has also positively influenced the market sentiment of Propylene Carbonate.

The majority of Propylene Carbonate manufactured in the US is exported to Mexico and Canada, accounting for more than 70% of the total Propylene Carbonate exports.

However, in the previous month, consumption fell as the price of ordinary products and services rose due to inflation. As interest rates rose, loans and mortgages became more expensive, reducing domestic and business expenditures. Although inflation in the United States has slowed to 4.9%, central banks still consider it uncomfortably high despite their goal of 2%.

Additionally, consumer demand continued to stall as the United States released inflation data that showed an upward tick, prompting people to postpone purchases. Also, the end-use industry's performance remained subdued as Housing Starts and Builder Confidence decreased in response to rising rent and living costs.

Inquiries with market players indicated major destocking of Propylene Carbonate, including upstream propylene oxide, across the value chain in the market.

One of the major growth drivers expected to enlarge the global Propylene Carbonate market size soon is the increasing demand for lithium-ion due to its widespread use in consumer electronics, small and large appliances, electric vehicles, and electrical energy storage systems (ESS), as Propylene Carbonate-based electrolytes play an important role in determining the safety and electrochemical performance of Li-ion batteries.

On the cost side, the production costs have ramped up in the last few weeks amid the production cut announced by OPEC+ and Russia, amid which the international crude oil prices surged across the region. Consequently, upstream Propylene and Propylene Oxide prices demonstrated upward price movement.

According to ChemAnalyst pricing intelligence, the prices of Propylene Carbonate are presumed to exhibit a stable trend in the upcoming months as the upstream value chain is anticipated to provide adequate support.

The market is expected to grow significantly in the US region in the upcoming weeks, owing to the rapidly rising demand for natural gas as well as the increasing production of gas companies, as well as the rising demand for Propylene Carbonate for natural gas treatment, synthetic ammonia conversion gas, and oil pyrolysis gas.