Polyalphaolefin (PAO) Price Trends and Forecast

Regional Price Overview

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

Asia

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.

Europe

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.

North America

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.

Analyst Insight

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

Asia

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.

Europe

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.

North America

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.

Analyst Insight

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

Asia

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.

Europe

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.

North America

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.