The Poly alpha olefins (PAO) market price for the Asia-Pacific (APAC) region has been stable during the first half of March, as the industry has experienced relatively balanced supply-demand dynamics, contributing to steady market conditions.

In the APAC region, the PAO market is maintaining a stable price trend, driven by consistent demand across industries such as automotive, lubricants, and industrial applications. The demand for synthetic lubricants, which heavily depend on PAO, has been on stable side, particularly in China. The demand for PAOs has improved, driven by the expanding automotive and industrial sectors that require high-performance lubricants for engines, machinery, and manufacturing processes.  However, supply-side challenges persist, with manufacturers as congestion has increased again at Chinese ports due to multiple vessels arriving simultaneously and weather-related port closures, leading to tight supply conditions. Fluctuations in crude oil prices have also affected PAO prices in the region, though they remain largely stable due to steady availability in the Chinese market.

In Europe, the price trend is very much similar, induced by the current push for more fuel-efficient, longer-lasting lubricants in both consumer and industrial applications. Supply dynamics are being affected by handling operations are delayed by 24 hours in Hamburg and Bremerhaven, resulting in delayed and cancelled train departures, busy causing disruptions in the supply chain. Some mild delays at some UK ports are reported. The continued demand for PAO in the automotive sector and industrial application such as machinery greases, which continued to support the consumption in the region. The manufacturers are maintaining steady inventory levels to meet the demands of the market.

In the USA, the PAO market is experiencing consistent prices, despite the inferior production costs, and reducing costs of raw materials. In the automotive sector, the Toyota sales have fallen around 4.8% on year-on-year basis which indicates the subdued demand. However, the SUV and EV sales saw an increase. The market is facing tight supply conditions, as refineries are operating at reduced capacity and encountering significant logistical challenges, also the ethylene market has experienced declines in the prices.

The PAO market is expected to maintain a modest price increase in the coming months as, the strong demand in automotive and industrial applications, particularly from high-performance and sustainable lubricant markets is bound to sustain. However, logistical disruptions such as port congestions, variations in raw materials and energy prices, could create volatility in the market.