Polyether Polyol Price Trend and Forecast

Polyether Polyol Regional Price Overview

Get the latest insights on price movement and trend analysis of Polyether Polyol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Polyether Polyol Price Trend for the First Half of 2024

Asia

During the first half of 2024, the price trend of polyether polyol in Asia, particularly in India and China, was influenced by the fluctuating costs of its key feedstock commodities. In India, the price faced upward pressure due to rising crude oil costs and increased downstream demand from the fuel additive sector, which added to the overall production costs of polyether polyol. Despite this, the market outlook remained optimistic, supported by firm demand. In contrast, the Chinese market experienced a more subdued and downward price trend, largely driven by increased supply volumes from recent capacity additions and ongoing production expansions. This excess supply in China led to a competitive market environment where suppliers were compelled to keep prices low, even as production costs rose.
 

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Throughout the second quarter, the Chinese market continued on a slow downtrend due to moderate raw material cost support and fluctuating prices. With an overall balanced supply and average demand, there was limited upward momentum in the market. Downstream buyers' cautious purchasing behavior further pressured prices downward, contributing to a generally stagnant market outlook. As a result, the polyether polyol prices in China received with limited cost support and a prevailing wait-and-see approach among market participants, reflecting the broader feedstock price dynamics in the region.

Europe

In the first half of 2024, polyether polyol prices in Europe were influenced primarily by high energy costs and supply chain disruptions, which affected production rates. Tensions in the Middle East, particularly after a missile attack on an oil tanker near Yemen, increased shipping traffic and delayed feedstock supplies, raising production costs.

Despite stable demand and sufficient market stocks during the early months of 2024, the market saw tight supply conditions due to delayed supply chains and high production costs of propylene oxide, the key feedstock for polyether polyol production. The construction sector and automotive manufacturers, particularly electric vehicle producers, showed firm demand for Polyol towards the end of Q2, supporting the supply crunch and upward movement of overall market dynamics.

North America

In the USA, polyether polyol prices showed a bullish trend in early 2024, driven by strained supply availability and increased production costs. A winter storm and production issues at key manufacturing units tightened supply further, pushing producers to raise prices.

The USA's manufacturing sector showed some improvement, with rising demand from the construction and furniture industries boosted by seasonal sales and increased spending. However, in mid-2024, improved feedstock availability and stable demand helped moderate the upward price trend, though the market experienced fluctuations due to supply dynamics. Looking ahead, prices are expected to rise again due to potential increases in upstream propylene costs and consistent demand from construction and manufacturing sectors, even as feedstock availability remains a concern.

Analyst Insight

According to Procurement Resource, the price trend of Polyether Polyol is expected to sustain its bullish trajectory with ample support from the downstream industries and a limited supply of the commodity in global markets.
 

Polyether Polyol Price Trend for the Second Half of 2023

Asia

In the end half of 2023, the price trend in polyether polyol prices showed a volatile trend. Initially, during the first half of the duration, the market encountered several challenges due to excessive inventories and subdued demands from downstream sectors, resulting in meek market sentiment.

As the fourth quarter unfolded, the number of inquiries from the downstream polyurethane industries and textile sector nosedived, exerting additional downward pressure on polyether polyol market trends. Also, with the fall in the cost of feedstock materials, the manufacturers found it difficult to sustain in the market, and thus, eventually, the market was forced to lower their price quotations of polyether polyol.

Europe

In European countries, elevated inflation levels significantly affected the purchasing potential of European consumers, leading to a downturn in economic activity and a notable decrease in downstream demand.

Carrying forward from the previous quarter, the traders throughout the third and fourth quarters struggled with excessive inventories, prompting suppliers to reduce production to restore balance. Throughout the last half of 2023, the downstream polyurethane foam market of Europe experienced predominantly bearish demand, similar to that of Asian countries.

North America

The US market of polyether polyol was no different from the Asian and European countries as the market fundamentals projected a weak momentum and supported the depreciation in the prices of polyether polyol. Additionally, shifts in consumer behavior to cheaper alternatives from Asian countries increased the competitiveness of the domestic market, and the evident rise in the economic crisis experienced by the region was also well reflected in the pricing movement of polyether polyol.

Analyst Insight

According to Procurement Resource, the price trend of Polyether Polyol is estimated to dwindle on the lower end of the spectrum as the feedstock support and inquiries from the downstream industries are expected to remain negligible.
 

Polyether Polyol Price Trend for the First Half of 2023

Asia

Polyol price trend had a mixed run in the first half of 2023. Initially, in quarter one, the inventories were overstocked, and downstream demands remained dampened, which kept the market sentiment muted. As quarter two arrived, the feedstock propylene oxide prices started declining, further pushing the polyol prices down. Propylene Oxide prices dipped by around 11% in the second quarter; hence the necessary upstream cost pressure required to maintain the prices were not provided, and the polyol prices fell.

Europe

The heightened inflation compromised the purchasing power of European customers. The economic downturn heavily impacted the downstream demand. The markets were already saturated with the products, which compelled the suppliers to cut production to stabilize the overall dynamics.

The downstream polyurethane foam market posed bearish demands for most of H1’23. With the arrival of cheap imports from the Chinese markets, pressure was exerted on the polyol price trend even further. The manufacturers lowered their quotations in hopes of positive product movement and to empty the existing inventories.

North America

The US market replicated the slow and declining trend of its Asian and European counterparts. Consumer behavior observed fundamental shifts because of the economic crisis the country witnessed. The reduced purchasing enthusiasm aid feeble demands caused the price trend for polyols to decline.

Analyst Insight

According to Procurement Resource, the price trend for Polyol are expected to oscillate in the coming quarter. Given the dampened market demand amid wavering feedstock prices, the polyol prices are likely to fluctuate on the lower end of the curve.
 

Polyether Polyol Price Trend for the Second Half of 2022

Asia

Polyol prices witnessed a mixed pricing pattern in the second half of 2022 in the Asian market. Q3 started with a declining trend because of decreased demand from the downstream industries. However, the prices started inclining mid-quarter as the inventory started reducing. The Chinese production capacities have taken a serious hit because of the industrial shutdown to contain covid-19.

The prices crashed again towards the end of the fourth quarter as the factories enhanced their production rates aided by positive upstream cost pressure. However, the falling demands could not keep up with the rising inventory stocks. Thus, the prices fell further.

Europe

The European Polyol market recorded an oscillating pattern in polyol prices. Initially, the prices subsided, given the economic downturn and dampened demands. However, as the upstream costs stabilized and feedstock propylene oxide prices rose, the prices of polyols increased in the market. This trend continued till the mid-Q4, after which the prices fell again. Given the approaching holiday season, the December slump negatively impacted the market dynamics.

North America

The polyol market in America behaved no differently than other international markets. Market offtakes and feedstock prices majorly influenced the prices. Given the fluctuating downstream demands, a series of inclines and declines were noticed. The prices picked up during March-April and slumped again as the market strived for equilibrium towards the end of Q4.

Analyst Insight

According to Procurement Resource, Polyol prices are expected to continue wavering on the declining curve given the uncertainties in the downstream demand and fluctuating upstream cost pressure.
 

Polyether Polyol Price Trend For the First Half of 2022

Asia

The price trend for Polyol inclined steadily during the first quarter owing to healthy pricing fundamentals. The robust downstream demand from the polyurethane and textile industries supported the high prices of polyols. With the resurgence of covid related shutdowns and geopolitical turbulence, the global supply chain was affected. Dwindling inventories and complex logistics provided much upstream cost pressure, which was aided by the solid demand from the automotive and construction sector.

The price of polyester polyol MW 3000 and ice of polyester polyol MW 3000 & μ 550 grade averaged 2798.04 USD/MT Ex- Mumbai. However, the prices in the Chinese domestic market were lower than the Indian domestic market, given the strong demand fundamentals in the domestic Indian market.

As the upstream cost pressure stabilized in the second quarter and the factories started churning out products, the manufacturers dropped their quotations to make room for new production. Hence, polyols prices fell in the second quarter in the Asia- Pacific region.

Europe

The consistent demand from the pharmaceutical, automotive, and aerospace industries kept the polyol pricing fundamentals strong in the European market. The price of polyether polyol μ 400-650 averaged 3110 USD/MT during the said period. Given the high-cost inflation and energy crisis, polyol prices reached dramatic highs. Later, towards the end of Q2, the prices for polyols plateaued and stabilized as the upstream oil and gas prices relaxed.

North America

The price of polyether polyol averaged 4516 USD/MT during the first quarter. These high pricing fundamentals were due to a plethora of factors, namely high crude oil prices, frequent supply shocks, lack of skilled labour, complex logistics and strong market sentiments.

However, with the interest hikes by the central bank and cautious buying activity in the face of rumoured speculations of recession, soon the market demand turned lacklustre, and the prices fell, averaging 2080 USD/MT towards the end of Q2.

Analyst Insight

According to Procurement and Resource, the prices of polyether polyols are expected to decline further. With governments worldwide rolling out contractionary monetary policies and the reduced buying activity in the market coupled with stockpiling of inventories will likely cause the prices to crash.

Procurement Resource provides latest prices of Polyether Polyol. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.