Polyol prices in the USA persisted in their decline throughout the initial half of May 2024. It recorded a 1% decline amid stable demand and improved availability of supplies in the market. The demand for Polyol was moderately low from the downstream Polyurethane industries. Simultaneously, the market experienced ample availability of Polyol stocks, caused by the firm operating rates at manufacturing facilities and moderate offtakes from the buyers.

The Polyol production rates were firm at manufacturing units, and cost support fell amid the ample availability of feedstock Propylene Oxide supplies, bolstered by greater access to upstream Propylene and Propane stocks in the market, resulting from reduced consumption for heating purposes. In April 2024, the US Manufacturing Purchasing Managers' Index fell from March, ending a three-month streak of improving conditions as the manufacturing new orders declined for the first time in four months. The Producer Price Index (PPI) for final demand rose 0.5 percent in April, and Final demand prices decreased 0.1% in March and advanced 0.6% in February. Moreover, in April, the US Exports rose 7.1% compared to March, reaching 133.8 points. This increase comes after several months of either declining or stagnant month-on-month changes.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in April on a seasonally adjusted basis after rising 0.4% in March. The demand for Polyol was sluggish from the adhesive and sealant Polyurethane manufacturers. In the first quarter of 2024, Dow Chemicals reported that the Polyurethanes & Construction Chemicals business experienced a decline in net sales compared to the previous year, primarily due to local price decreases, partially mitigated by volume increases across all geographic regions Sequentially, net sales remained unchanged as gains in price and volume in the US & Canada and EMEAI were offset by reduced volumes in Asia Pacific, attributed to the typical Lunar New Year seasonality. However, the market displayed mixed consumption of Polyol and Polyurethane in the manufacturing sector. In the Automotive sector, US light vehicle sales reached an annualized 15.4 million units in the first quarter of 2024, reflecting a 2.7% increase compared to the previous year.

According to the ChemAnalyst data sources, the Polyether Polyol MW 3000, μ 400-650 FOB Texas witnessed USD 2130/MT at the end of the first half of May 2024.

As per the estimation, the Polyol prices in the US increase in the upcoming weeks as the anticipated increase in upstream Propylene prices would raise the production costs of Polyol. Simultaneously, the Polyol offtakes may improve from Polyurethane manufacturers, and the inventory levels would deplete with the incline in offtakes.