The Polyol market experienced a predominantly downward trajectory throughout 2025, influenced by feedstock cost dynamics and evolving demand patterns across key downstream applications. The year commenced with prices at elevated levels during the first quarter, supported by initial firmness in adipic acid costs and steady consumption from polyurethane foam, coatings, and adhesive manufacturing sectors. Prices continued their descent through the second quarter, reaching lower levels as the market adjusted to reduced procurement activity from the furniture, automotive, and construction industries. Polyurethane flexible foam manufacturers adopted cautious buying strategies amid an uncertain demand outlook, while rigid foam producers for insulation applications maintained measured consumption. The feedstock cost relief provided some margin support for polyol producers, though weak end-market conditions limited any meaningful price recovery.
The second half witnessed range-bound fluctuations at lower price levels compared to the year's opening. The third quarter saw prices oscillating within a narrow band as supply and demand found temporary equilibrium. However, the fourth quarter brought renewed weakness as market sentiment deteriorated further. Demand from bedding, automotive seating, and construction insulation applications remained subdued, while inventory levels stayed adequate across the supply chain. By year-end, prices had declined significantly from their early-year peaks, reflecting softer fundamentals throughout the polyol value chain.