Polyurethane (PU) Resin prices witnessed mixed sentiments due to fluctuation in automotive sector demand and lower feedstock Isocyanates prices globally. Escalating global inflation weighs on product consumption in October 2022. Besides, the rising energy prices led to inflationary input cost pressure on the commodity market.

The European PU Resin monthly prices sustained a downtrend in October 2022, backed by lower consumer confidence for the commodity in the market. The ease in the feedstock Polyols and Isocyanates prices led to a rise in the production of the product in European countries and impacted the price of PU Resin. The gloomy demand outlook kept the PU Resin market sentiments bearish, with surging recession fears amongst the buyers in the region. The European market continued to be constrained, and traders focused on a weak demand outlook for the commodity.

At the same time, In China, the PU Resin market experienced a slight price surge in the second week of November 2022 after a continuous fall in the previous weeks, backed by the rise in overseas inquiries and rebound in downstream Automotive production. Besides, the weakening Chinese economy affected the pricing momentum of PU Resin this week. With the Chinese Yuan depreciation against the US dollar, manufacturers increased the export activities for the product despite slowness in the domestic offtakes. Thus, the PU Resin weekly prices increased by 1% in the Chinese market.

As per ChemAnalyst analysis, the prices of PU Resin in the global market will likely rise further with a rise in the energy and crude oil prices during November 2022. The European PU Resin market is expected to be impacted by surging consumer confidence and production activities in the Automotive sector. Additionally, commodity prices are anticipated to rebound in Asia to increase the profit margins, with rising raw material Polyols costs.