Get the latest insights on price movement and trends analysis of Polyalphaolefin (PAO) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Polyalphaolefin Price Trends for the First Half of 2023
Polyalphaolefin prices had a mixed run in the Asian market in the first half of 2023. Market dynamics were mostly stable during the said period. Mild demands supported the fair production capacities. Downstream automotive and lubricant industries also posed fair demands stabilizing the market. Feedstock ethylene (derived from crude oil) also fluctuated on the lower side in the discussed period, contributing to the sullen movement in the price curve. Overall, Polyalphaolefin prices wavered on the lower side during the first half of 2023.
European Polyalphaolefin markets exhibited sullen price trends during H1 2023. The European automotive industry has been hit hard by the economic crisis because which affected Polyalphaolefin consumption rates. The consumers posed bearish demands causing the inventories to overflow. European suppliers placed very limited orders only as per downstream inquiries. Overall, market sentiments remained dull and slow because of high supply and low demand.
The Polyalphaolefin market in the North American region replicated stable sentiments from the Asian market. Crude oil prices were stable, and feedstock ethylene prices were also relatively steady. The automotive sector had a warm run which kept the demand dynamics stable. Overall, the market was slow yet stable as the supply-demand equilibrium remained constant.
According to Procurement Resource, the Polyalphaolefin market is expected to continue the same lukewarm growth as the supply-demand dynamics are stable. Demand from downstream industries will continue to drive the Polyalphaolefin market.
Polyalphaolefin (PAO) Price Trends for the Second Half of 2022
The market for poly-alpha-olefins saw an uprising trends throughout the third quarter. The decrease in the demand from the automotive sector and the decline in ethylene costs did not affect the market much. This incline in prices is majorly attributed to the stable demand from the EV market. The prices then dipped in the fourth quarter due to the decline in demand from the automotive industry. Poor economic conditions, a rise in COVID-19 restrictions, and poor demand from the end-user industries led to the decline in the prices.
Throughout the third quarter, the prices declined due to the poor performance of the automotive industry. The high costs of energy production and the operation rates of the automotive industry remained low during the quarter. The fourth quarter, however, saw a marginal incline in the prices initially due to the rise in the feedstock costs. The rise in the operational cost during the first half of the fourth quarter drove the rise in the prices. This rise was short-lived as the rise in inventories during the later months led to a decline in the prices.
The prices declined during the third quarter due to the decline in the performance of the automotive sector in the North American region. The decline in the feedstock demand also contributed to this decline. The fourth quarter also showcased a similar trends in the price of the commodity. Increased production costs, poor demand, a rise in natural gas costs, and reduced exports during the third quarter led to a decline in the prices of the commodity.
The prices of PAO are likely to decrease during the coming month given the rise in the domestic inventories, poor demand from the automotive sector, and high inflation in the market.
Polyalphaolefin (PAO) Price Trends For the First Half of 2022
The price trends of PAO (Polyalphaolefin) registered a fluctuating pattern throughout the said period in the Asian market. The Indian automotive industry suffered owing to the trade restrictions, supply shortages and higher operating costs, hence the prices in the Indian market slipped averaging 4885 USD/MT.
However, in the Chinese domestic arena, the automotive industry kept stable owing to the muted demand with the price of PAO averaging 3515 USD/MT. However, the prices soon stabilized during the second quarter as trade and port congestion relaxed owing to which the feedstock prices stabilized. Hence, the booming demand from the automotive industry caused the PAO prices to increase.
The European market closely followed its Asian counterpart. The prices dipped during the first quarter and stabilized during the second quarter. Suffering from the direct consequences of the Russian invasion of Ukraine, the entire European region registered double-digit inflation.
These inflated prices discouraged the automotive sector and hence the price of PAO suffered averaging 4170 USD/MT. However, the prices stabilized towards the second quarter as the feedstock prices relaxed with the arrival of substitute shipments from other regions.
The price trends for PAO kept strong throughout the year’s first half due to the unaffected demands from the resource-hungry automotive sector. The price of polyalphaolefins averaged 3260 USD/MT during the said period in the US domestic market.
Procurement Resource provides latest prices of Polyalphaolefin (PAO). 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.
Polyalphaolefin (PAO) is by far the most significant synthetic base oil used in commercial and automotive lubricants. Since it closely resembles the best hydrocarbon (branched) structure found in mineral oils, it is referred to as a synthetic hydrocarbon (SHC). There are no ring structures, double bonds, sulphur, nitrogen, or waxy hydrocarbons in PAO.
The absence of these components or structures produces an exceptionally non-polar base oil with a high viscosity index of about 130, superior low-temperature flow, strong oxidation stability, outstanding pour-point characteristics, and compatibility with mineral oils, paints, and seals frequently found in lubricating oil systems.
|Product Name||Polyalphaolefin (PAO)|
|Industrial Uses||Used in industrial and automotive lubricants, As a coolant in radiators|
|Supplier Database||Exxon Mobil Corporation, INEOS, Chevron Phillips Chemical Company LLC, Lanxess Group|
|Region/Countries Covered||Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe: Germany, France, United Kingdom, Italy, Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America: United States and Canada
Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
|Currency||US$ (Data can also be provided in local currency)|
|Supplier Database Availability||Yes|
|Customization Scope||The report can be customized as per the requirements of the customer|
|Post-Sale Analyst Support||360-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.
In this process, polyalphaolefin is produced by polymerization of alpha olefin.
The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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