Renewed fighting between US and Iran has slowed shipping through the Gulf of Hormuz, disrupting supply routes. Benchmark crude prices have climbed sharply from pre-conflict levels, reflecting heightened geopolitical risk. The upward price pressure is likely to continue while tensions persist.
Intensified US-Iran military actions disrupt oil shipments through the Strait of Hormuz, causing a sharp spike in crude oil prices. The price jump leads to severe depreciation of the Indian rupee, raising import costs and inflationary concerns.
Allyl alcohol pricing remains anchored to its propylene feedstock and to downstream demand from glycerol, allyl esters, polyether resins, coatings, pharmaceuticals, and specialty chemicals.
The first half of 2026 was a two-speed period for allyl alcohol. Early in the half, the escalation of Middle East tensions from late February pushed crude oil sharply higher, tightening naphtha and propane supply into Asia and driving a pronounced rally in propylene and its derivatives; Asian polypropylene benchmarks, a close proxy for propylene sentiment, rose over 30% between January and March as a Strait of Hormuz bottleneck curtailed feedstock flows. Allyl alcohol prices firmed in step, as resin, glycerol, and specialty-chemical buyers absorbed the higher feedstock cost base. European prices carried a premium of their own, reflecting elevated regional energy costs and tighter logistics, while North American prices firmed alongside the broader propylene complex.
As the geopolitical disruption eased and Middle East flows normalised through the second quarter, propylene costs retraced from their highs, and allyl alcohol prices softened back toward a more balanced footing; the bulk of new Chinese PDH capacity was scheduled for commissioning later in the year, so it had limited bearing on the H1 supply picture. Demand from coatings and construction-linked resins stayed subdued throughout, capping how far prices could recover.
Analyst Insight
According to Procurement Resource, allyl alcohol prices are expected to stabilise near current levels in the near term, with direction hinging on the durability of the Middle East-related feedstock premium, the timing of new Chinese PDH capacity in H2 2026, and the pace of recovery in resin, pharmaceutical, and specialty chemical demand.
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Asia
In 2025, the Asian allyl alcohol market followed a predominantly weak-to-balanced trajectory, influenced largely by propylene feedstock volatility, new capacity additions, and subdued downstream demand. The year began on a soft note as oversupply conditions and weak consumption from resins, plasticizers, and pharmaceutical intermediates pressured prices despite brief early support from seasonal demand. In the second quarter, the market continued to decline, driven by falling propylene costs, high inventory levels, and cautious procurement from downstream industries. Producers operated at reduced rates amid weak margins and limited export opportunities. During the third quarter, prices showed mixed movement, initially soft due to increased supply from new capacities, before stabilizing and recovering slightly toward the end as maintenance shutdowns and modest restocking improved sentiment. In the fourth quarter, the market remained range-bound, with early weaknesses linked to lower feedstock costs followed by gradual stabilization as propylene prices firmed and downstream demand from resins and coatings improved marginally. Overall, the Asian market transitioned from early-year oversupply-driven weakness to a more balanced environment by year-end.
Europe
The European Allyl alcohol prices in 2025 reflected a stable-to-soft trend, largely mirroring developments in Asia. The first half of the year was characterized by weak demand from polyether resins, coatings, and construction-related sectors, along with high inventory levels and competitive imports from Asia, which limited price growth. Macroeconomic pressures and subdued industrial activity further weighed on market sentiment, keeping trading conditions cautious. In the second half, the market remained relatively stable, supported by balanced supply conditions and steady consumption of pharmaceuticals, agrochemicals, and specialty chemical applications. By Q4, prices stabilized further as feedstock costs firmed slightly and supply-demand fundamentals moved toward equilibrium, although gains remained limited due to conservative purchasing behavior.
North America
In North America, allyl alcohol prices exhibited a fluctuating but largely subdued trend throughout 2025. Early in the year, weather-related disruptions and feedstock volatility created short-term price increases, followed by stabilization as supply conditions normalized and downstream demand from plastics and resins remained weak. The second quarter saw continued softness due to declining construction and manufacturing activity, alongside cautious, just-in-time procurement strategies. In the latter half of the year, prices showed mild recovery as feedstock costs increased and maintenance activities temporarily tightened supply. However, overall market sentiment remained balanced, with stable demand from specialty chemicals and coatings supporting gradual stabilization toward year-end.
Allyl Alcohol in appearance, is a clear colourless liquid with a mustard-like odour. Its flash point is 21oC (70°F). It is less dense than water (7.1 lb / gal) and its vapours are heavier than air. It is the smallest representative of the allylic alcohols and is a water-soluble compound like many alcohols.
C3H6O
Laboratory chemicals, Chemical intermediate and precursor, Production of glycerol and esters , Allyl compounds , Resins, Pesticide, Food additive
2-Propen-1-ol, 3-Propenol, Pro-2-en-1-ol, Vinylcarbinol
LyondellBasell Industries Holdings B.V., RX Marine International, Dairen Chemical Corp, Acros Organics, Central Drug House
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
The production of Allyl Alcohol from allyl chloride utilises the process of hydrolysis. Allyl chloride is hydrolysed to form the desired product and this method is widely utilised by the Olin and Shell corporations.
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This report presents a detailed cost analysis of allyl PEG production from polyethylene glycol ether and allyl chloride using polymer capping process.
This report presents a detailed cost analysis of Allyl alcohol production from propylene.
The report involves the cost analysis of production of allyl chloride by the chlorination of propylene via a free radical mechanism at high temperatures.
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