- Polyether polyol prices moved higher in Q1’26, with Asia showing the sharpest firmness, Europe supported by producer-led increases, and North America remaining more balanced.
- Feedstock pressure came mainly from propylene oxide and propylene, supported by higher crude-linked costs, tighter imports, and freight disruption after the Strait of Hormuz closure.
- Downstream demand was mixed. Flexible foam demand from furniture, bedding, automotive seating, and appliances offered support, while construction weakness limited stronger rigid foam consumption.
Asia
Asian polyether polyol prices rose during Q1’26, led by China. The main driver was the sharp increase in propylene oxide, which raised production costs and pushed producers to revise offers. China’s propylene oxide imports declined, while exports also dropped, showing a tighter domestic supply position. Thailand and Saudi Arabia remained key supply origins, making the chain exposed to shipping and Middle East disruption. Downstream demand was mixed, as industrial value added rose 6.1%, but real estate investment declined 11.2%, reducing rigid foam demand from insulation and construction.
Europe
European polyether polyol prices strengthened in Q1’26 due to higher energy, logistics, and polyurethane-chain costs. Producer increases were announced for polyether polyols and MDI, reflecting pressure across the foam value chain. Euro area industrial producer prices rose 3.4% month-on-month in March, while energy prices increased 11.1%, raising costs for utilities, processing, and transportation. Demand remained weak, as industrial production fell 2.1% year-on-year and building construction declined 7.1%, limiting consumption from insulation, furniture, and construction foams.
North America
North American polyether polyol prices were mostly stable with mild firmness. Resin and petrochemical cost indicators strengthened, but foam product pricing showed limited pass-through. U.S. construction spending reached USD 2,185.5 billion in March, up 1.6% year-on-year, supporting insulation, adhesives, sealants, and furniture applications. However, downstream buyers remained cautious, and balanced foam demand prevented sharper increases.
Analyst Insight
According to Procurement Resource, near term, polyether polyol prices may remain firm if propylene oxide, freight, and energy costs stay elevated. A stronger rise would need tighter supply or better demand from construction and furniture sectors.