In the first half of February 2025, the Polyol prices showcased bullish movement in the North American region. The U.S. trade deficit widened to USD 98.4 billion, with a decline in exports and an increase in imports. Polyol demand from importers was low, and amidst a modest recovery in U.S. manufacturing, Polyol production remained stable, benefiting from lower input costs. Meanwhile, the demand for Polyol to produce materials for the automotive and construction sectors remained moderate, influenced by weak vehicle sales and economic uncertainty in construction.

The demand for Polyol in the downstream Polyurethane industries to produce PU materials for key sectors such as automotive and construction remained subdued. The automotive industry experienced a 25.6% drop in vehicle sales from December 2024, although there was a 2.8% year-over-year increase. Meanwhile, the construction sector faced mixed results, with only 8,000 new jobs added in December 2024. Rising inflation, high borrowing costs, and the Federal Reserve’s cautious stance on interest rate cuts have created a climate of uncertainty, potentially dampening construction activity and limiting demand for Polyol in both the automotive and construction industries.

On the manufacturing front, the U.S. saw a modest recovery in January 2025, marking the first production growth in six months, buoyed by stronger new orders and improved business confidence, partly attributed to the onset of the Trump presidency. However, Polyol production remained stable, with easing input costs due to falling upstream Propylene prices and stabilized propane costs, driven by reduced heating demand in the Northern Hemisphere.

At the same time, the U.S. trade deficit surged to USD 98.4 billion in January 2025, driven by a USD 7.1 billion dip in exports to USD 266.5 billion, while imports jumped from USD 12.4 billion to USD 364.9 billion. Additionally, the U.S. Department of Commerce imposed new export controls on January 13, 2025, targeting advanced artificial intelligence technologies, reflecting a strategic focus on trade balance and technological security.

Additionally, Tri-Iso introduced Carpenter CARPOL® GP-3000 initiated a glycerine- Polyether Polyol with a functionality of three and a molecular weight of 3000 Da, designed for use in the C.A.S.E. (Coatings, Adhesives, Sealants, and Elastomers) industry. It enhances the Polyol performance in a variety of applications, including coatings, sealants, potting compounds, adhesives, and elastomers, and is polymerized with propylene oxide for controlled reactivity.

Polyol prices are expected to rise towards the end of Q1 2025 due to increased market competition and firm demand in the international market. Further, the arrival of spring in the Northern Hemisphere is likely to drive increased supply activity, supported by favorable trade conditions, further contributing to the upward trend in Polyol prices.