# Propylene oxide: Correlation Prices it moves with, and why Source page: https://www.materialinsights.org/chemicals/propylene_oxide/correlation/ Propylene oxide is made from propylene by chlorohydrin, peroxide or co-product routes that also yield styrene or MTBE. Most goes into polyols for polyurethane foam, so furniture, bedding, car and insulation demand set its price. Proxy **US PPI: other basic organic chemicals** index (BLS base period) · monthly, Jan 2006 to Sep 2026 There is no free public price for propylene oxide itself, so this tab uses the closest public series as a stand-in. Read the numbers as an indication, not as the price of this exact item. #### What its price moves with Selected link ##### Propylene oxide and Propylene Monthly changes 0.29 weak correlation 12-month changes 0.64 moderate correlation Last 5 years 0.42 monthly changes Lead or lag none No clear lead or lag Price function, Jan 2006 to Sep 2026 Propylene oxide ≈ 164.2 × (Propylene)^0.07 R² 0.01 On this fit, a 10% higher propylene price goes with a 0.7% higher propylene oxide price over the long run. Units: index (BLS base period) and index (BLS base period). The fit is loose, so treat the function as a rough guide. Chart: Propylene oxide and Propylene prices rebased to 100 at Jan 2006, log scale Both prices rebased to 100 at Jan 2006, on a log scale so equal percentage moves look the same size. Chart: Propylene oxide price against Propylene price, monthly, log scales, with fitted line Each dot is one month; paler dots are older (2006), darker dots recent (2026); the ringed dot is the latest month. The dashed line is the fitted price function. Both axes are logarithmic. Chemical [C3H6 Propylene](https://www.materialinsights.org/chemicals/propylene/)Feedstock 0.29 Propylene supplies the carbon of propylene oxide and most of its raw material cost. The petrochemical proxy moves with the basic organics proxy at 0.29 monthly and 0.64 yearly. Peroxide-route plants also depend on their co-products. weak co-movement month to month · 249 months Show charts Chemical [PU Polyurethanes (MDI, TDI, polyols)](https://www.materialinsights.org/chemicals/polyurethanes/)Main product 0.24 Polyether polyols made from propylene oxide react with MDI or TDI to form polyurethane foam. The thermosetting resins proxy moves with the basic organics proxy at 0.24 monthly and 0.74 yearly. weak co-movement month to month · 249 months Show charts Chemical [Cl2 Chlorine](https://www.materialinsights.org/chemicals/chlorine/)Input 0.20 The older chlorohydrin route consumes chlorine and lime, so chlor-alkali conditions affect the cost of that capacity. The alkalies and chlorine index moves with the proxy at 0.20 monthly and 0.63 yearly. little or none co-movement month to month · 249 months Show charts Chemical [SM Styrene](https://www.materialinsights.org/chemicals/styrene/)Co-product 0.33 The PO/SM process makes propylene oxide and styrene together, so styrene prices change the net cost of propylene oxide. The cyclic intermediates proxy moves with the basic organics proxy at 0.33 monthly and 0.80 yearly. weak co-movement month to month · 249 months Show charts Energy [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)Feedstock cost 0.23 Oil sets the cost of propylene and of the co-products that share these plants. Brent moves with the proxy at 0.23 monthly and 0.58 yearly, diluted because the proxy covers many other chemicals. weak co-movement month to month · 249 months Show charts How to read these numbers **Correlation of monthly changes** (the number in the coloured pill) compares how much each price moved, month by month, since 2006 or the first month both series exist. It runs from −1 to +1: near +1 the two usually rise and fall in the same months, near 0 there is no link, and a negative number means they tend to move in opposite directions. Above 0.7 is strong, 0.4 to 0.7 moderate, 0.2 to 0.4 weak. **12-month changes** compare year-on-year moves, which shows whether two prices share the same cycles even when the month-to-month noise differs. **Price function** is a straight-line fit of the two prices on logarithmic scales: price ≈ k × (partner price)^β. β is how much this price moves, in per cent, for a 1% move in the partner over the whole period, and R² is the share of the variation the fit explains. Two prices that both drift up with inflation can fit well without any real link, so read it together with the monthly correlation. **Lead or lag** checks whether the monthly correlation is clearly higher when one price is shifted by 1 to 6 months. Correlation is not cause. The reasons on each card explain the economic link; the numbers show how strongly it has shown up in prices. Proxy series are US producer price indexes or related prices and can blur the real link. Data: World Bank Commodity Price Data (Pink Sheet), October 2026; US Bureau of Labor Statistics producer price indexes, IMF primary commodity prices and US EIA prices via FRED, Federal Reserve Bank of St. Louis, retrieved November 2026. Calculations by this site. ## Other sections - [Summary](https://www.materialinsights.org/chemicals/propylene_oxide/index.md) - [Overview](https://www.materialinsights.org/chemicals/propylene_oxide/overview/index.md) - [Production route](https://www.materialinsights.org/chemicals/propylene_oxide/routes/index.md) - [Production](https://www.materialinsights.org/chemicals/propylene_oxide/production/index.md) - [Feedstocks](https://www.materialinsights.org/chemicals/propylene_oxide/feedstocks/index.md) - [Cycles](https://www.materialinsights.org/chemicals/propylene_oxide/cycles/index.md) - [Trading](https://www.materialinsights.org/chemicals/propylene_oxide/trading/index.md) - [Movement](https://www.materialinsights.org/chemicals/propylene_oxide/movement/index.md) - [Regulation](https://www.materialinsights.org/chemicals/propylene_oxide/regulation/index.md) - [Characteristics](https://www.materialinsights.org/chemicals/propylene_oxide/characteristics/index.md) - [Emissions](https://www.materialinsights.org/chemicals/propylene_oxide/emissions/index.md) - [Relationships](https://www.materialinsights.org/chemicals/propylene_oxide/links/index.md)