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.
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Asia
During Q4’25, the Polyether Polyol prices in the Asia region witnessed a weak trend. The principal reason for this trend was the low demand from the polyurethane industry, particularly from the construction, furniture, and appliance industries. The purchasing activity had slowed down after the holiday season, and most of the buyers had placed orders for small quantities to meet their urgent requirements. On the other hand, the supply situation was comfortable due to stable production.
The Propylene Oxide prices had decreased due to their high inventory levels and lower propylene prices, which lowered the production costs for polyol manufacturers. In China, the additional capacity and balanced to ample supply conditions further pressurized the sellers. The antidumping duties imposed by India on the copolymer polyols further impacted the regional trade.
Europe
In the Europe market, the prices of Polyether Polyol remained weak or stable during Q4’25. This market was facing tremendous pressure due to high energy costs and increasing imports from Asia. Demand from the major consuming industries like the automotive, furniture, and construction industries remained weak due to low consumer sentiment. Additionally, the market was also facing the challenge of excess capacity. However, the major news was that Dow decided to shut down the plant for polyols in Belgium by early 2026. This is because the European polyurethane market has been facing structural problems. Another factor was the weak Propylene Oxide feedstock prices, which reduced the support for polyol sellers. Hence, the sellers were facing difficulty in supporting the prices.
North America
In the North American market, the prices of Polyether Polyol also declined in Q4’25. The demand from the construction sector as well as the durable goods sector was low. The overall demand from the polyurethane segment was cautious in nature. The inventory levels were under control in the market. The prices of the feedstock material Propylene Oxide declined in the quarter due to higher inventory levels, stable supply conditions, and a decline in propylene prices. The export demand for PO products was low, which resulted in higher domestic supply and hence impacted the prices of polyol. There were no specific supply-side issues in the market, but the demand was low while the raw material was in ample supply. Hence, the prices declined gradually in the quarter.
Analyst Insight
According to Procurement Resource, Polyether Polyol prices are expected to remain stable in the near term. Market direction would depend mainly on recovery in construction demand and feedstock propylene oxide trends.
Polyethers are of a class of organic substances which are formed by joining or polymerizing many molecules of simpler compounds (monomers) by establishing ether links between them. Polyethers which can have chainlike or networklike molecular structures are an unusually diverse group of polymers.
Additive for Lubricants, Preparation of Synthetic Detergents, Sealants and Adhesives, Production of Polyurethanes
BASF SE, Covestro AG, Royal Dutch Shell Plc, The Dow Chemical Company, Mitsui Chemicals, Wanhua Chemicals Group, LANXESS AG
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
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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 procedure, various chain starters are reacted in a catalysed batch process with propylene oxide and/or ethylene oxide in the presence of a catalyst.
Udeesha Tomar
AVP - Strategy and Solutions
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This report provides the cost structure of ethyl tert-butyl ether production using C4 raffinate stream or raffinate-1 or butane or isobutylene along with ethanol.
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