Get the latest insights on price movement and trends analysis of Polyol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).
Polyol Price Trends for the First Half of 2023
Polyol price trends had a mixed run in the first half of 2023. Initially, in quarter one, the inventories were overstocked, and downstream demands remained dampened, which kept the market sentiment muted. As quarter two arrived, the feedstock propylene oxide prices started declining, further pushing the polyol prices down. Propylene Oxide prices dipped by around 11% in the second quarter; hence the necessary upstream cost pressure required to maintain the prices were not provided, and the polyol prices fell.
The heightened inflation compromised the purchasing power of European customers. The economic downturn heavily impacted the downstream demand. The markets were already saturated with the products, which compelled the suppliers to cut production to stabilize the overall dynamics. The downstream polyurethane foam market posed bearish demands for most of H1’23. With the arrival of cheap imports from the Chinese markets, pressure was exerted on the polyol price trends even further. The manufacturers lowered their quotations in hopes of positive product movement and to empty the existing inventories.
The US market replicated the slow and declining trends of its Asian and European counterparts. Consumer behavior observed fundamental shifts because of the economic crisis the country witnessed. The reduced purchasing enthusiasm aid feeble demands caused the price trends for polyols to decline.
According to Procurement Resource, the price trends for Polyol are expected to oscillate in the coming quarter. Given the dampened market demand amid wavering feedstock prices, the polyol prices are likely to fluctuate on the lower end of the curve.
Polyol Price Trends for the Second Half of 2022
Polyol prices witnessed a mixed pricing pattern in the second half of 2022 in the Asian market. Q3 started with a declining trends because of decreased demand from the downstream industries. However, the prices started inclining mid-quarter as the inventory started reducing. The Chinese production capacities have taken a serious hit because of the industrial shutdown to contain covid-19.
The prices crashed again towards the end of the fourth quarter as the factories enhanced their production rates aided by positive upstream cost pressure. However, the falling demands could not keep up with the rising inventory stocks. Thus, the prices fell further.
The European Polyol market recorded an oscillating pattern in polyol prices. Initially, the prices subsided, given the economic downturn and dampened demands. However, as the upstream costs stabilized and feedstock propylene oxide prices rose, the prices of polyols increased in the market. This trends continued till the mid-Q4, after which the prices fell again. Given the approaching holiday season, the December slump negatively impacted the market dynamics.
The polyol market in America behaved no differently than other international markets. Market offtakes and feedstock prices majorly influenced the prices. Given the fluctuating downstream demands, a series of inclines and declines were noticed. The prices picked up during March-April and slumped again as the market strived for equilibrium towards the end of Q4.
According to Procurement Resource, Polyol prices are expected to continue wavering on the declining curve given the uncertainties in the downstream demand and fluctuating upstream cost pressure.
Polyol Price Trends For the First Half of 2022
The price trends for Polyol inclined steadily during the first quarter owing to healthy pricing fundamentals. The robust downstream demand from the polyurethane and textile industries supported the high prices of polyols. With the resurgence of covid related shutdowns and geopolitical turbulence, the global supply chain was affected. Dwindling inventories and complex logistics provided much upstream cost pressure, which was aided by the solid demand from the automotive and construction sector.
The price of polyester polyol MW 3000 and ice of polyester polyol MW 3000 & μ 550 grade averaged 2798.04 USD/MT Ex- Mumbai. However, the prices in the Chinese domestic market were lower than the Indian domestic market, given the strong demand fundamentals in the domestic Indian market.
As the upstream cost pressure stabilized in the second quarter and the factories started churning out products, the manufacturers dropped their quotations to make room for new production. Hence, polyols prices fell in the second quarter in the Asia- Pacific region.
The consistent demand from the pharmaceutical, automotive, and aerospace industries kept the polyol pricing fundamentals strong in the European market. The price of polyether polyol μ 400-650 averaged 3110 USD/MT during the said period. Given the high-cost inflation and energy crisis, polyol prices reached dramatic highs. Later, towards the end of Q2, the prices for polyols plateaued and stabilized as the upstream oil and gas prices relaxed.
The price of polyether polyol averaged 4516 USD/MT during the first quarter. These high pricing fundamentals were due to a plethora of factors, namely high crude oil prices, frequent supply shocks, lack of skilled labour, complex logistics and strong market sentiments.
However, with the interest hikes by the central bank and cautious buying activity in the face of rumoured speculations of recession, soon the market demand turned lacklustre, and the prices fell, averaging 2080 USD/MT towards the end of Q2.
According to Procurement and Resource, the prices of polyether polyols are expected to decline further. With governments worldwide rolling out contractionary monetary policies and the reduced buying activity in the market coupled with stockpiling of inventories will likely cause the prices to crash.
Procurement Resource provides latest prices of Polyether Polyol. 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.
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.
|Product Name||Polyether Polyol|
|Industrial Uses||Additive for Lubricants, Preparation of Synthetic Detergents, Sealants and Adhesives, Production of Polyurethanes|
|Supplier Database||BASF SE, Covestro AG, Royal Dutch Shell Plc, The Dow Chemical Company, Mitsui Chemicals, Wanhua Chemicals Group, LANXESS AG|
|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 procedure, various chain starters are reacted in a catalysed batch process with propylene oxide and/or ethylene oxide in the presence of a catalyst.
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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