The Polyol market has been showcasing bearish sentiments for the past few weeks in the North American region, attributed to the sluggish consumption in the downstream Polyurethane sector. The Polyol orders were moderately low from the buyers due to decreased consumption from the downstream segment. Polyol is a key component used in producing Polyurethane (PU) materials. The Polyurethane sector experienced sluggish demand in the furniture industry in October due to the availability of excess stock influenced by a 1.4% decrease in spending at furniture stores in September 2024, driven by rising furniture prices. Simultaneously, Polyurethane consumption rates were stable to produce adhesives, pipes, and coatings in the construction sector, supported by the availability of existing stock. According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) for adhesives and sealants remained unchanged in October 2024 compared to the previous month. Additionally, the Consumer Price Index (CPI) increased in October 2024, and buyers were cautiously making their purchases.

Meanwhile, in October 2024, the Polyol supply rates were moderate in the regional market because of production losses due to the occurrence of hurricanes in North America.  At the same time, the US Manufacturing Purchasing Managers' Index (PMI) fell again in October 2024, indicating a slowdown in manufacturing sector activities during the month. However, Polyol production and supply rates improved in the second half of the month. Simultaneously, cost support eased from feedstock Propylene Oxide due to a decline in offtakes in the second half of October 2024 amid weak demand from end users along with improved supply rates and inventory levels in the market. According to ChemAnalyst data sources, the Polyol prices witnessed a 1.5% decrease in the first half of November 2024 and Polyol MW 3000, μ 400-650 FOB Texas quotations in the US hovered at USD 2020/MT at the end of the week concluded on 15th November 2024.

The Black Friday sales are approaching, and the retail sector typically experiences a significant surge in sales driven by attractive discount deals and increased consumer affordability. This boost in retail activity also extends to the furniture market, which often experiences higher sales during this period. As furniture sales rise, the demand for Polyurethane foam, used in furniture products, also increases. As a result, it is expected that the demand for Polyol will rise within the Polyurethane segment. Consequently, Polyol prices in the North American region are anticipated to increase in mid-Q4. Additionally, Polyol production costs may rise amid the increase in variable production costs due to higher energy prices during the winter months. Hence, the Polyol price trend would alter and showcase a positive momentum in the North American region.