For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Polyol pricing in the North American region remained stable, with no significant fluctuations observed. Various factors contributed to this stable pricing environment. The demand for Polyol was moderate, primarily driven by consistent consumption in downstream industries such as construction and manufacturing. Supply levels were adequate to meet this demand, leading to a balanced market scenario. Additionally, stable cost support from feedstock Propylene Oxide further contributed to the equilibrium in Polyol prices.
In the middle of the third quarter, Polyol production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations marginally, however the market dynamics remain stable.
With a percentage change of -24% from the same quarter last year and no change from the previous quarter in 2024, the market exhibited a sense of stability. The price remained constant between the first and second half of the quarter, indicating a lack of significant fluctuations. The quarter-ending price of USD 2140/MT of Polyether Polyol MW 3000, µ 400-650 FOB Texas in the USA reflected the prevailing stable pricing sentiment in the region.
APAC
In Q3 2024, the Polyol market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased upstream Propylene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the upstream Propylene supplies and Polyol production rates. Polyol prices fluctuated and rose marginally, and the price comparison between the first and second half of the quarter showed a negative change of 1%. Towards the end of the quarter, the increased availability of feedstock Propylene oxide supplies, driven by improved refinery operations and Crude Oil availability amid a resumption of Crude Oil supply from Libya in September 2024, negatively impacted the production costs. Simultaneously, offtakes for moderately low from the PU segment during the period. Conclusively, from the previous quarter in 2024, prices fell by 8%, indicating a downward trend. Polyether Polyol MW 3000 FOB-Osaka prices in Japan settled at USD 1230/MT at the end of quarter 3 of 2024.
Europe
During the third quarter of 2024, the European Polyol market was driven predominantly by a confluence of factors impacting supply and demand dynamics. Throughout the quarter, the sluggish demand from the downstream industries, particularly polyurethane manufacturers, due to reduced construction activities and a shift towards bio-based materials negatively influenced the market dynamics. Moreover, the oversupply situation, exacerbated by cautious purchasing behavior amid rising inflation and economic uncertainties, further pressured prices. The automotive sector, traditionally a significant consumer of polyurethane products, also contributed to the weakened demand as vehicle sales remained subdued. Additionally, the manufacturing sector faced challenges, with the Eurozone Manufacturing PMI indicating declining new orders and rising costs, further dampened demand. Supply-side dynamics also played a role, as supply availability improved post-summer holidays, yet demand failed to match this increase, exacerbating inventory levels. Seasonality played a crucial role, as the summer holidays typically result in reduced industrial activities, subsequently decreasing demand. Consequently, the first and second half of the quarter saw a 4% decrease, reflecting a consistent negative pricing environment throughout the period. The quarter concluded with a Polyether MW 3000, µ 400-650 FOB Hamburg price at USD 1560/MT in Germany, after an overall 11% drop from the last quarter's prices, underscoring the negative sentiment pervading the Polyol market, driven by both external economic pressures and internal market dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Polyol market saw fluctuating prices due to several converging factors. A significant drop in demand from the construction sector, coupled with ample supply levels, has exerted downward pressure on prices. The slowdown in the construction industry has led to reduced consumption of PU materials made from Polyol. Additionally, the sluggish performance of the automotive sector has further decreased offtakes, contributing to the decline in prices. Feedstock prices, particularly Propylene Oxide, have remained relatively low, offering minimal cost support to Polyol producers.
In the USA, where price volatility was most pronounced, the overall trend has been consistently negative. Seasonal factors also played a role; anticipated increases in demand during the monsoon season for PU sole footwear did not materialize, further suppressing prices. The relationship between upstream feedstock prices and Polyol prices remained strong, with minor fluctuations in Propylene Oxide costs reflected in Polyol pricing. Compared to the same quarter last year, Polyol prices plummeted by 35%, indicating significant overcapacity and subdued demand. Prices also fell by 1% from the previous quarter in 2024, demonstrating ongoing bearish sentiment. The first half of Q2 saw a sharper decline of 5% compared to the latter half, highlighting the continued weakening of market conditions as the quarter progressed.
By the end of Q2 2024, Polyether Polyol MW 3000, µ 400-650 FOB Texas was priced at USD 2140/MT. This substantial decrease reflects a predominantly negative pricing environment, driven by weak demand, sufficient supply, and stable yet low feedstock costs. The overall sentiment remains negative, with little prospect for a near-term recovery without a significant increase in market demand.
APAC
In the second quarter of 2024, Polyol pricing in the APAC region experienced notable shifts due to a combination of economic and sectoral factors. The market saw increased volatility, primarily due to subdued demand from the construction and automotive industries, which are crucial to Polyol consumption. This decline in demand was worsened by an oversupply, with manufacturers struggling with excess inventory due to inconsistent offtake rates. Additionally, fluctuations in upstream Propylene and Naphtha costs, essential for Polyol production, added downward pressure on prices. Overall, the sentiment was negative as market participants dealt with supply chain uncertainties and varying input costs. In Japan, the most significant price changes were observed. Seasonal factors, including lower demand during off-peak months and reduced construction activity, heavily impacted the Polyol market. Prices in Japan dropped sharply, with a 9% decrease compared to the same quarter last year, highlighting a broader market contraction. From the previous quarter in 2024, prices fell by 3%, reflecting ongoing bearish sentiment throughout the period. A comparison of the first and second halves of the quarter revealed a 9% price drop, indicating a steady decline in market momentum. By the end of the quarter, Polyether Polyol MW 3000 FOB-Osaka was priced at USD 1260/MT, underscoring the overall negative trend. This pricing environment reflects a challenging quarter for Polyol, marked by negative market forces, supply-demand imbalances, and raw material cost volatility.
Europe
In Q2 2024, the Polyol price trend in Europe fluctuated, with notable shifts occurring mid-quarter. Initially, prices were stable with a slight increase due to reduced production rates from limited feedstock supplies. However, demand from the Polyurethane segment remained weak. Mid-quarter, a reduction in geopolitical tensions in the Middle East and improved feedstock availability revitalized manufacturing activities in the region. Despite this, subdued demand from key end-use sectors, particularly construction and automotive industries, remained a significant factor. The construction sector faced prolonged downturns due to declining investment sentiment, while the automotive sector experienced a notable drop in car sales, leading to decreased consumption of Polyurethane materials. Additionally, an ample supply of feedstock Propylene Oxide, driven by reduced offtakes from regional Glycol manufacturers, further pressured Polyol production costs downward, resulting in an oversupplied market with stagnant demand. Germany saw the most significant price changes within the region. The overall trend was marked by a bearish sentiment, influenced by seasonal factors and economic conditions. The ongoing decline in automotive sector consumption was a key factor, with manufacturing and new orders contracting more than expected. Compared to the same quarter last year, Polyol prices plummeted by a staggering 35%, reflecting broader market struggles. Prices remained stable from the previous quarter, showing no percentage change, indicating that the market had adjusted to lower demand levels. However, a closer examination reveals a 6% price decline between the first and second halves of the quarter, highlighting a consistent weakening trend. By the end of Q2 2024, Polyether MW 3000, µ 400-650 FOB Hamburg in Germany was priced at USD 1760/MT. The pricing environment remained decidedly negative, driven by market oversupply and waning demand, resulting in a significantly bearish outlook for the Polyol market in Europe.
For the Quarter Ending March 2024
North America
The Polyol price trend remain weak in the North American market during the first quarter of 2024 when compared with the previous one. At the beginning of the quarter, the demand for Polyol was moderately low during the New Year holidays and firm availability of stocks in the market. However, orders increased from the Polyurethane segment after the holidays as the furniture industry saw a surge in sales due to Presidents' Day deals and increased demand for painted furniture and cabinets. Simultaneously, the inquiries surged for energy-efficient products in the refrigeration industries.
During the mid-quarter, prices inclined the orders for Polyurethane component Polyol rose in the Polyurethane segment amid a rise in demand from the construction sector for stocking purposes amid the anticipation of the revival of construction activities in the North American region with the arrival of spring. Simultaneously, feedstock supplies were affected as the LyondellBasell in Bayport Texas, with a feedstock Propylene Oxide production capacity of 60,000 MTPA, went under force majeure on 3rd Feb 2024 and impacted the production rates of the product. Additionally, the energy sector witnessed surges in energy costs due to geopolitical tensions and positive economic data, which caused escalations in the production costs of Polyol.
Towards the end of the quarter, Polyol prices continued to showcase bullish movement in the USA as orders were firm from the buyers due to the steady demand for Polyurethane components in the manufacturing and construction sectors. In the refrigerators and freezers (cold chain) sector, consumers complained of fridges dying young, which caused a surge in demand for Polyol for repair and replacement objectives. At the end of the quarter, Polyether Polyol MW 3000, μ 400-650 FOB Texas in the USA witnessed USD 2240/MT.
APAC
In the first quarter of 2024, the Polyol price trend showcased bullish movement in the APAC region. At the beginning of Q1, prices inclined as demand from the Polyurethane segment escalated amid a surge in the production of electric vehicles in the automotive industry. Simultaneously, supply rates were impacted amid disruptions due to natural disasters like the earthquake and tsunami in Japan. Simultaneously, demand improved for stocking purposes before the Lunar New Year holidays in major isocyanate producers in China. During the mid-quarter operation, rates were low at manufacturing units due to affected production rates of feedstock Propylene Oxide because of the tight availability of upstream Propylene due to limited supplies of Crude Oil from Middle East exporters amid the geopolitical conflicts and trade problems through the sea routes. At the same time, the major Polyol market in China was closed during the Lunar New Year holidays from 2nd February 2024 till 18th February 2024. As a result, Polyol prices escalated amid sluggish trading activities and firm demand from buyers like India due to consistent market offtakes during the wedding season and firm consumption of PU materials from the automotive and manufacturing sectors. However, operating rates and trading activities improved after the reopening of the Chinese market. Towards the quarter's end, the air cargo market witnessed increased demand for the third consecutive month in March, fuelled by the expansion of e-commerce and shipping disruptions in the Red Sea, impacting air freight rates and product supplies in the international market amidst moderate demand from buyers. At the end of the first quarter of 2024, Polyether Polyol MW 3000 FOB-Osaka quotations in Japan settled at USD 1360/MT.
Europe
In the first quarter of 2024, the European Polyol market experienced trends akin to those observed in the North American region. Initially, supply chain delays and extended lead times hindered the availability of supplies within the regional market. However, demand was moderate for Polyurethane (PU) component Polyol as orders for PU foam in the manufacturing sector witnessed declines amid the increase in production costs of wood furniture in the region. It caused a slight reduction in the Polyol market prices. During the mid-quarter, the production rates were affected by elevated energy costs and limited access to Propylene Oxide feedstock, exacerbated by delayed supplies of upstream Propylene from the US exporters due to trade problems through the Suez Canal. Simultaneously, uncertainties regarding energy security in Europe arose, influenced by a pause in US LNG exports, impacting variable costs across industries. The automotive sector continued to witness heightened demand for lightweight PU materials derived from Polyols, attributed to the growing production of electric vehicles. Towards the quarter's conclusion, regional manufacturing units grappled with disruptions to production schedules due to a shortage of skilled labor. It resulted in diminished output rates and escalated operational costs. Additionally, global air cargo demand experienced its third consecutive monthly increase in March, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates. Consequently, Polyol prices trended upwards again by the quarter's end, with Polyether MW 3000, μ 400-650 FOB Hamburg in Germany assessed at USD 1920/MT.
For the Quarter Ending December 2023
North America
In the North American region, Polyol experienced a bearish price trend during Q4 2023, with prices declining due to low demand and sluggish manufacturing activities in the Polyurethane segment. This price decrease is attributed to depressed consumption rates from end-user industries. Initially, the demand was sluggish for Polyurethane materials from the Automotive manufacturers due to a decline in manufacturing activities amid the United Auto Workers (UAW) strike.
At the same time, the cost support declined on feedstock Propylene Oxide at the beginning of the quarter amid weak demand from Glycol industries and firm availability of upstream Propane stocks in the region. During the mid-quarter, Polyol inventory levels were adequately available in the market, and demand remained low from the Polyurethane segment more significantly after Black Friday sales and a decline in sales in the retail sector due to the depressed consumption rates from the end-user Automotive and manufacturing sectors.
The price trend remained persistent towards the end of the quarter amid cautious buying activities from buyers. Conclusively, the low demand from the downstream industries, coupled with the introduction of bio-based Polyurethane, negatively impacted the petrochemical-based Polyurethane component consumption, and prices witnessed a decrease of almost 30% compared to the previous quarter. At the end of the final quarter of 2023, the Polyether Polyol MW 3000, μ 400-650 FOB Texas in the USA hovered at USD 2130/MT.
Asia
In the Asia-Pacific region, the Polyol market situation was bearish due to low to moderate demand from the downstream industries and a decline in manufacturing sector activities, and prices decreased consistently throughout the final quarter of the year 2023. The feedstock Propylene Oxide prices decreased in the region due to the pile up of stocks because of reduced offtakes from Glycol industries. It reduced production costs, and Polyol production rates remained firm in Asian region. During the mid-quarter, procurement activities were reduced from the regional buyers with the arrival of winter and Polyurethane components, and PU materials consumption rates remained sluggish from the end-user Automotive and manufacturing sectors. Towards the end of Q4, the destocking practices by the regional isocyanates producers and sluggish consumption rates from the buyers further tilted the prices in the negative direction. Meanwhile, the Polyol consumption rates improved from the PU segment as the regional wood furniture market picked up the pace amid an increase in retail sector sales, and PU foam consumption rates improved in the manufacturing sector. At the end of Q4 2023, Polyether Polyol MW 3000 FOB-Osaka in Japan hovered at USD 1284/MT.
Europe
Like the North American region, the Polyol market in Europe showcased bearish movement during the fourth quarter of 2023, with prices declining throughout the quarter. The market was primarily affected by low demand from the Polyurethane segment, as well as sluggish manufacturing activities during the peak winter and decreased offtakes from domestic buyers. Initially, adequate availability of supplies and the switching interest of downstream buyers towards bio-based Polyurethane materials negatively impacted the demand from the buyers. During the mid-quarter, Polyol supply rates were firm in the regional market as shipping rates were consistent from the European hubs. The Eurozone Manufacturing Purchasing Manager's Index also dropped throughout the quarter, indicating a contraction in the manufacturing sector activities. Towards the end of the quarter, the Wood Furniture market in the European region was negatively impacted due to the bursting of a housing bubble, causing a decline in the demand for wood furniture and a decline for Polyurethane foam from the manufacturing sector. Consequently, the consumption of Polyurethane components diminished, and inventory levels remained firm in the market. Conclusively, the Polyol prices witnessed a decrease of almost 22% in the region, and at the end of Q4, 2023, the Polyether MW 3000, µ 400-650 FD Antwerp quotations in Belgium accessed at USD 1880/MT.
For the Quarter Ending September 2023
North America
The Polyol showcased bearish movement in North America, and prices fell by almost 14% during the Q3 of 2023 amid low offtakes due to sluggish manufacturing activities in the downstream Polyurethane segment. At the beginning of the quarter, prices decreased marginally amid the availability of previous stocks and moderate demand as the USA's manufacturing Purchasing Manager's index improved during July 2023. Meanwhile, shipping and freight routes were affected amid the decline in Mississippi and Ohio river water levels and delayed shipping route activities through the Panama Canal. The hike in bank interest rates by the Federal Reserve Bank to cool down the rising inflation resulted in a decline in demand from buyers, causing a slowdown in the economic growth of the region, and product prices declined again during the mid-quarter. However, an improvement in demand downstream of Polyurethane foam was seen from the construction sector, which raised the Polyol marginally. Then, prices declined again towards the end of Q3 amid the high availability of inventories in the regional market amid no significant improvement in offtakes from the Polyurethane segment. Conclusively, at the end of Q3 of 2023, Polyol prices in the USA witnessed USD 2830/MT.
Asia
In the Asian region, Polyol prices showcased mixed sentiments during the 3rd quarter of 2023. At the beginning of the quarter, the decline in prices was nominal. The demand from regional buyers was stable at the beginning of the quarter. However, inquiries increased during the mid-quarter amid the decline in production rates as it stressed the product's availability in the regional market. The orders were low from the Polyurethane segment throughout quarter 3 of 2023, while the demand remained moderate from the textile sector. The escalation in cost support on feedstock Propylene and upstream Naphtha due to Crude Oil production cuts by OPEC+ and Russia raised the production costs. Furthermore, the occurrence of regional storms and typhoons like Doksuri, Saola, and heavy rains stressed the production and supply rates. Consequently, Polyol prices declined marginally towards the end of the quarter, amid the availability of supplies and moderate production rates due to escalation in production costs amid high upstream prices. At the end of Q3, 2023, Polyether Polyol MW 3000 FOB-Osaka prices in China and Japan hovered at USD 1290/MT and 1380/MT, respectively.
Europe
Like the North American region, the Polyol prices showcased bearish movement in Europe during the Q3 of 2023 amid low offtakes due to sluggish manufacturing and purchasing activities in the Polyurethane segment during summer holidays in the region. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Consequently, the Eurozone manufacturing Purchasing Manager's Index dropped gradually during the 3rd quarter, indicating contractions in manufacturing sector activities and a decline in procurement activities from downstream Polyurethane buyers. The availability of stocks was firm due to previously increased imports from Asia. It resulted in an arbitrage window, and suppliers reduced the quotations in the domestic market during the mid-quarter. Demand was sluggish from the downstream Polyurethane industries due to moderately low orders from the construction sector and electronic appliances manufacturers. Conclusively, the Polyol price declined by almost 13% during the quarter. At the end of the quarter, Polyol prices in the Netherlands and Belgium hovered at USD 2420/MT and USD 2405/MT, respectively.
For the Quarter Ending June 2023
North America
The Polyol prices slumped in the North American region during the Quarter 2 of 2023. The offtakes remained sluggish from the downstream Polyurethane industries due to weak activities in the construction sector during Q2 of 2023. Simultaneously, the demand was low, but due to the rising recession and layoff practices, producers and traders increased restocking practices amid increased labor costs. Meanwhile, increased logistics costs provided cost support during the mid-quarter. However, due to the depressed demand in the international market, the traders started destocking practices towards the end of the quarter, which raised the inventory levels, and suppliers decreased their quotations noticeably in the region. At the same time, the feedstock Propylene Oxide prices shifted movement and rose during the H2 of the quarter due to increased demand from downstream Propylene Glycol manufacturers, which raised the production costs of Polyol during the mid-quarter. Towards the end of Q2, Polyol prices declined again due to stabilization in cost support and a decline in demand after the increase in Federal Reserve interest rates. At the end of Q2 2023, Polyol prices in the USA witnessed USD 3290/MT.
Asia
The Polyol price trend showcased bearish movement during quarter 2 of 2023. The demand was low from regional and international importers due to the sluggish activities in the Polyurethane sector and firm availability of supplies. Simultaneously, the consumption rates from Polyurethane elastomer and coating producers remained inadequate throughout the quarter due to the inactive construction sector. Meanwhile, the strengthening of the US Dollar and the weakening of the other currencies impacted the product prices in the international markets, and price movement showcased mixed sentiments in Asia, and the demand for Chinese material was firm in the overseas market during the mid-quarter. Furthermore, trading activities increased in China before the Labour Day holidays, as the market was closed in China. Towards the end of the quarter, Polyol prices decreased slightly amid intensified buying activities before the Dragon boat festival. Meanwhile, the consistent fall in the feedstock Propylene Oxide costs throughout Q2 amid declined cost support from upstream Naphtha decreased the production costs of Polyol. Conclusively, at the end of Q2, 2023, Polyol prices in Japan witnessed USD 1390/MT.
Europe
In the European region, the price trend of Polyol remained steady, and prices were decreased consistently by producers and suppliers as the demand was low from downstream Polyurethane sealants and coatings producers due to sluggish activities in the construction and electronics industries. At the end of the quarter, the price decrease intensified amid the firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. In the H2 of the quarter, the feedstock Propylene Oxide prices shifted movement and rose due to increased demand from downstream Propylene Glycol manufacturers, which raised the production costs of Polyol during the mid-quarter. Towards the end of Q2, Polyol prices declined again due to stabilization in cost support and a decline in demand after the increase in the bank interest rates. At the end of the quarter, the Polyol prices in the Netherlands and the United Kingdom witnessed USD 2796/MT and USD 2770/MT, respectively.
For the Quarter Ending March 2023
North America
The Polyol price trend showcased bearish movement throughout the first quarter of 2023. In the H1 of the quarter, prices fell amid depressed orders from Polyurethane industries due to surplus availability of supplies. During the mid-quarter, Supply chain activities improved with the temperature rise. At the same time, increases in Federal Reserve Interest rates throughout the quarter to curb rising inflation made the buyers conscious while making purchases. Consequently, at the end of Q1, prices declined further amid sluggish offtakes and reduced cost support on feedstock Propylene Oxide costs after the successful start of LyondellBasell’s Propylene Oxide plant at Channelview Texas, with a production capacity of 470 KTPA. At the end of the quarter, Polyether Polyol prices in the USA hovered at USD 4300/MT.
Asia
The Polyol price trend shifted during the Q1 of 2023. Initially, prices declined due to sluggish demand and firm inventory levels. Because of the surplus availability of supplies, European importers increased orders. However, from the 2nd month of the quarter, prices started increasing and rose till the end of the quarter. The prices rose noticeably amid firm orders from regional Polyurethane industries for PU foam in the manufacturing sector due to increased demand for furniture in the retail sector. Simultaneously, feedstock Propylene Oxide costs rose due to stressed availability and shifting upstream costs amid volatile crude oil prices. At the end of Q1, 2023, Polyether Polyol prices in China settled at USD 2851/MT.
Europe
Throughout quarter 1 of 2023, the Polyol price trend remained bearish, and quotations consistently decreased by the suppliers amid surplus availability of supplies due to firm imports from Asia. At the same time, the demand was low from downstream Polyurethane industries due to weak orders for PU foam in the construction and automotive sector. At the same time, significant decreases in the Dutch TTF natural gas costs reduced the input prices. In the H2 of the quarter, feedstock Propylene Oxide prices decreased consistently due to sluggish offtakes and further eased the cost support. At the end of the quarter, the Polyether Polyol prices in Germany and Netherlands hovered at USD 2780/MT and USD 3845/MT, respectively.
For the Quarter Ending December 2022
North America
Polyol price trend showcased fluctuated during the final quarter of 2022. In the H1 of the quarter, Polyol prices rose on the back of stable consumption levels amid rising inflation. Then the price trend shifted in H2, and product prices started decreasing, and prices declined till the end of Q4. From the mid-quarter, the feedstock Propylene Oxide prices decreased on the back of firm inventory levels and a reduction in upstream WTI Crude oil prices, which reduced the production costs. The product offtakes also plunged from the mid-quarter and remained low till the end of the quarter. In the final month of Q4, the product prices decreased due to low offtakes due to weak manufacturing activities in the downstream automotive sector. At the end of Q4 2022, Polyol prices in the USA settled at USD 4750 /MT.
Asia
In the first month of the quarter, prices increased amid affected feedstock supplies. However, from mid-quarter onwards, the prices started declining due to weak trading activities and an increase in domestic inventory levels in countries like China because of disruption in the supply chain activities amid zero covid controls and a decrease in manufacturing and trade activities. The market situation improved towards the end of the quarter, and Polyol prices fell again due to destocking practices by the regional exporters amid ease in the global freight charges. At the end of Q4 2022, Polyether Polyol prices in China hovered at USD 1300/MT.
Europe
Polyol price trend shifted during Q4 of 2022. For the first couple of months, prices rose amid affected production rates and increased production costs amid input supply shortages because of an explosion at the Beixi pipeline. Simultaneously, the orders and offtakes remained low due to weak demand from the downstream Polyurethane producers and moderate production rates. From the mid-quarter, the facilities started operating moderately amid ease in the input costs and reduced offtakes. Hence the Polyol prices declined in the final month of Q4, and producers decreased their quotations by reducing their profit margins. Polyol prices in Germany settled at USD 2980/MT at the end of Q4 2022.
For the Quarter Ending September 2022
North America
A shift in Polyol’s price trend was seen during Q3 2022. During the H1 of the quarter, the product prices decreased consistently due to the reduction in feedstock Propylene Oxide prices caused by weak upstream prices. Simultaneously, increased inventory levels due to diminished product offtakes negatively impacted product prices. However, in the final month of the quarter, the price trend shifted, and Polyol’s prices rose till the end of Q3 due to an increase in the feedstock and input costs while the demand was moderate from end-user industries. After the end of Q3, Polyol prices in the USA settled at USD 4830/MT, after a marginal decrement of 1% in the previous quarter’s discussions.
Asia
The Asian market showcased a fluctuating price movement of Polyol during the 3rd quarter of 2022, likewise the other international markets. Initially, the prices fell persistently because of weak demand sentiments from downstream industries and decreased feedstock costs. However, in the final month of the quarter, the product price trend revived, and Polyol prices rose till the end of the quarter due to increased upstream price quotations by the exporters, which boosted the production costs. Also, the product inventory levels were affected due to plant shutdown activities as KPX chemical South Korea, with a capacity of 30,000 MTPA, went under shutdown in August. At the end of Q3, China’s Polyether Polyol MW 3000 FOB-Qingdao and Polyester Polyol MW 1700 FOB-Qingdao prices settled at USD 1490/MT and USD 1310/MT.
Europe
A fluctuation in the price movement of Polyol was seen in Germany during Q3,2022. In the H1 of the quarter, product prices declined due to reduced feed and upstream costs caused by dampened demand from downstream industries and increased raw material inventory levels. At the same time, the rationing of input supplies from the Russian exporters resulted in pressure on European manufacturers, and the domestic downstream producers cut their operational rates amid the rising inflation. Also, the high inflation rates, and deteriorating economic situations, depreciated the Euro values against the US Dollar. Subsequently, in the final month of Q3, the price trend shifted, and product prices rose till the end of the quarter due to an increase in the feed Propylene oxide costs and an improvement in product demand from PU producers. After almost a decrease of 9% from the previous quarter’s discussions, Germany’s Polyol prices settled at USD 3100/MT at the end of Q3.
For the Quarter Ending June 2022
North America
The price of Polyol decreased consistently throughout the quarter in the North American region due to the reduction in price quotations from exporting Asian countries like China. A decrement in production costs caused by the contraction in feed Propylene and upstream Naphtha prices decreased the import values in the domestic region, and volatile market dynamics and fluctuating freight costs caused downward pressure on prices. The demand remained stable from the downstream Polyurethane industries. After a significant quarterly decrement of 13% in previous quarter values, the price of Polyether Polyol MW 3000, μ 400-650 CFR Texas got settled at USD 2080/MT at the end of June 2022.
Asia
In the Asian region, the price trend of Polyether Polyol was continuously declining throughout quarter 2 of 2022 as prices were dwindling in key manufacturer China due to continuously declined feed Propylene prices in the region from South Korea. However, at the beginning of June, prices escalated briefly due to upstream cost pressure and increased propylene prices. Manufacturing and trade activities also remained affected due to the lockdown in China and port congestion caused by the clogging of the containers. Excessive stock inventories amid the stagnant demand from importing Polyurethane industries contracted the overall values of Polyols in the region with seasonal offtakes from the market. Post a significant quarterly decrement of 14% in Asia, the price of Polyether Polyol MW 5000 FOB Qingdao settled at USD 1855/MT.
Europe
The price of Polyol fluctuated throughout the quarter in the European region. During H1 of Q2, the prices rose sharply due to increased feed Propylene prices towards the end of Q1, which raised the upward cost pressure on the values. However, Propylene prices contracted in Q2, reducing the production cost of Polyol, and values decreased marginally until the end of the quarter. The demand remained firm with moderate offtakes as shipping activities were affected in the region. After a significant increment of 15% from Q1, the price of Polyether MW 3000, μ 400-650 FOB Hamburg assembled at USD 3110/MT at the end of Q2, 2022.
For the Quarter Ending March 2022
North America
The North American market witnessed an upsurge in Polyol prices during the 1st quarter of 2022 on account of robust downstream demand and increased upstream cost. As concerns regarding dental problems are escalating in countries like the USA, so is the need for Xylitol, eventually causing high demand for Polyol. In the USA, Diabetes and Obesity are two significant problems hence the distress around diabetes and obesity propelled the offtake of Polyol in the domestic market. Furthermore, intensified Propylene Oxide prices have also contributed to the price hike of Polyol in the region. Moreover, skyrocketed crude oil prices, fuelled freight charges, labor shortage, and port congestions are several other factors that have supported the price trend of Polyol in Q1 2022. Conclusively, the prices of Polyether Polyol (µ 400-650) were assessed at USD 4516/MT FOB Texas during March 2022.
Asia Pacific
The prices of Polyol have surged in the Asian market during the 1st quarter of 2022, backed by solid demand from downstream industries and enhanced prices of feedstock. The increased consumption of Polyurethane in foam-based industries propelled the offtake of Polyol in the domestic market. As construction and automotive sectors are in their rising phase in Asian countries, the demand for Polyol from these end-user industries has escalated significantly, leading to its price rise. Furthermore, the prices of Propylene Oxide (feedstock) fuelled in the concerned period, resulting in higher Polyol prices. The escalated crude oil prices amidst Russia-Ukraine war tensions further contributed to the price trend of Polyol across the region along with the congested ports and high freight charges added to Polyols' already augmented prices value in the domestic markets. Hence, in the Indian market, the prices of Polyether Polyol (Mw 3000 & µ 550) were assessed at USD 2798.04/MT Ex-Mumbai during March. However, the trend of Polyol is entirely different in China; the Polyol prices readily fluctuate in the Chinese domestic market during Q1 2022, caused by flickering demand and supply relationship. The evaluated prices of Polyether Polyol (Mw 3000) were at USD 1942/MT FOB Qingdao during March 2022.
Europe
The European market observed growth in Polyol prices during Q1 of 2022, backed by firm demand from several downstream industries. The growing automotive sector drove the demand for flexible Polyurethane foam, which in turn elevated the offtake of Polyol in the domestic market. Besides, the consumption of Polyol was high in the pharmaceutical sector. Furthermore, the demand from electronics, aerospace and construction industries further added to the price value of Polyol. Besides, enhanced prices of its feedstock were another significant factor that escalated the Polyol prices. Moreover, the intensified crude oil prices and freight charges largely supported the Polyol price surge.
For the Quarter Ending December 2021
North America
The North American Polyol market strengthened in October with price shocks that followed the rise in propylene oxide feedstock prices upon the shortage of upstream crude oil inventories in the region. The impact of the devastation from the Ida hurricane in late August remained prevalent during October, as many key refineries operated at low rates causing the whole crude oil value chain to register an upsurge in prices. The downstream polyurethane industries also suffered from low activity amid rallying demand fundamentals in the region. The improving supply chains and the strategic release of crude oil reserves by the USA along with other major countries of the world brought a small relaxation in November, which got boosted in December with recovering domestic Polyol output causing the prices to settle around USD 4180 to USD 4230/MT on FOB basis.
Asia
The tightness in propylene oxide feedstock in the Asian market pushed up the prices of Polyol during October. India, in particular, demonstrated high demand fundamentals while China suffered the wrath of energy shortage which caused the country to reduce production rates under the government’s pressure. The Asian Polyol market in November revealed mixed sentiments as a country-wise difference in trends were observed. In India, the November prices inched further high with festive season robustness in the polyurethane industries coupled with import constraints due to container shortages. As the import volumes enhanced with the relaxation in container challenges during November end the prices started to fall, further plummeting down in December to USD 2617/MT Ex-Mumbai due to expediting stock clearance activities. The Polyol prices in China exhibited a slight decrease during November and a sharp fall in December, settling at USD 2398/MT FOB Qingdao, with improvement in feedstock supplies and enhancing trade activities of the country.
Europe
The repercussions of global crude oil value chain tightness coupled with rallying natural gas prices weighed heavily on the European Polyol market causing the prices to inch upwards incessantly throughout the fourth quarter of 2021. Despite the easing supply chain constraints in the closing days of November, the Polyol manufacturers proceeded to implement positive price revisions in prices owing to the robust demand for the downstream polyurethane products in the upholstery and automobile sectors. The last assessed Germany Polyol prices hovered around USD 3910/MT FOB Hamburg after registering a week-on-week hike of 0.9%. The renewed rise in the upstream market and the force majeure in Dow’s Terneuzen production site in the Netherlands since December first week have again put the polyol supplies at risk in Europe.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, prices of Polyols continued to follow an upward climb tracing the trend of the previous quarters. Inventories remained low as demand for the material strengthened. Furthermore, downstream Polyurethane consumption continued to garner strong numbers which exerted pressure on upstream Polyol prices. Moreover, BASF imposed a temporary turnround at its production site in Geismar, Louisiana which was primarily involved in the production of TDI, MDI and polyols. Besides, several other plant shutdowns came in the aftermath of hurricane Ida which devasted southern states. Prices of polyol after conclusion of Q3 were assessed in the range of USD 4400 – 4500 per MT on FOB basis.
Asia
In Q3 2021, tight supply dynamics of feedstock TDI in China due to planned turnarounds in Shanghai and North China hindered Polyol production in the region in Q3. China has been a critical exporter of material in overall South Asia, thus constrained production in China has translated into price hikes in other countries including India as well. In India, Polyol prices continued to strengthen imitating global trend throughout the quarter. Supply chain disruptions and logistics issues limited the availability of the material in the market that directly exerted pressure on the Polyol market in India and hence fumed its prices.
Europe
During the third quarter of 2021, tightened feedstock supplies continued to hinder Polyol production in Europe. In this quarter, Covestro announced force majeure at its 200 KTPA MDI Brunsbuttel, Germany in early stages of the quarter. Inventory were measured at low levels, weather calamities in the region worsened logistics problems as well as curtailed production of the feedstocks. Covestro and BASF struggled for production in the backdrop of limited availability of raw materials that directly contributed to the inflation in the prices of Polyol in the region.
For the Quarter Ending June 2021
North America
Critical shortage of polyols in USA led to a steep rise in its prices during this quarter, supported by high demand from downstream Polyurethane (PU) sectors. Major downstream PU manufacturers were facing extreme shortage of upstream Polyether polyols, and traders were unable to complete their backlog orders. To rectify this extreme shortage, downstream manufacturers of USA had to import high-priced cargoes from Asia to keep their factories functioning. However, the supply activities, improved slowly by the end of the May as the production activities recovered effectively which were halted since Q1 due to winter devastation. Thus, the offers for Polyether Polyols (MW 3000) price hovered around USD 3915/MT during the final week of June in USA.
Asia
The Asian market witnessed firm sentiments for the product during this period, while the shortage of different grade polyols remained persistent throughout the quarter in all the Asian countries. China based manufacturers, revealed that they had firm demand from domestic and international market during the timeframe, while the availability remained tight. In addition, critical shortage in USA, also bolstered the export demand from China, as supplies were globally tight. Meanwhile in India, prices kept tumbling throughout the quarter, as the demand from the downstream manufacturers reduced effectively under pandemic mayhem. Despite of low spot availability, the prices declined and reached USD 2167/MT for Polyether Polyols during June in India. Chinese polyol prices showed some ease QoQ with Ex-Works Qingdao offers settling at USD 2520 per MT for Polyester polyol.
Europe
Tight supply of polyols in Europe led to an effective rise in the international pricing of the product during Q2 2021. The demand for Polyether polyols remained firm throughout the quarter from the downstream PU segments, while due to global shortage, availability remained inadequate to satisfy the overall demand of the region. In addition, manufacturers were expecting hike in demand from the construction and automotive sector, as the economic activities were picking up the pace. Manufacturing of mattresses picked up with the strong economic rebound noted in Q2 and a large European population spending on home furnishing.
For the Quarter Ending March 2021
North America
The North American market struggled to find balance during Q1 2021, due to winter cold spells faced across the US gulf coast leading to several plant turnarounds. The prices of several polymers and feedstock chemicals were rising due to affected production during the period. Plants of several Polyol producers including DOW and Covestro remained idled during mid of January to end of February. In addition, they have also stated that the production will remain slow due to lower availability of feedstock materials. Dow resumed the operations at its Polyol, Polyurethane, Propylene Oxide, Propylene Glycol, MDI, TDI manufacturing plants during mid-March. Responding to escalation in raw material rates and tightened market supply, Dow increased the prices of its Voranol, Voralux and Specflex Polyol grades by around USD 154.5 per MT with effect from Feb.
Asia
In the Asian markets, Polyols prices experienced a consistent increment throughout the quarter, amid supply shortages and firm demand from the domestic market. Regional output of APAC increased as several upstream plants woke up again after turnarounds in Q4 2020. Lunar holidays hindered the production and consumption of Polyols in China. Although the global supply was disrupted due to winter storm across the US gulf amid fair demand from other regions, which ultimately led to rise in price of Polyols across the region. In India, average price of polyols rose by more than 23% within the quarter. However, it is anticipated that the price acceleration may stop in forthcoming quarter.
Europe
The European market experienced adverse effect of winter storms in the US, and container shortages across major trading routes. Although the regional demand for Polyols remained firm during the period, but supply remained tight due to global shortages. As an effect, price for several Polyol grades skyrocketed during the quarter. Amidst tightened supply, Perstorp, a major global polyols supplier announced to increase the prices of nearly 12 different Polyol products across Europe, Middle East and Africa region, with surges ranging between USD 237.45 per MT to USD 474.89 per MT.
For the Quarter Ending September 2020
North America
As production rates were curtailed in Q2 due to languished demand, the availability of Polyol remained tight in the third quarter. Plant operating rates were adjusted in July keeping in mind that the demand is likely to stay dampened in the coming months. However, contrary to the perceived notions, the demand for Polyols recovered way faster in Q3 2020 which eventually resulted in a huge dropdown in inventory levels. Better offtakes from segments such as bedding, and furniture helped in achieving sales figures close to the pre lockdown levels. Furthermore, astonishing revival of the automotive sector considerably push up the market fundamentals in North America by the September end.
Asia
Supply of Polyols remained snug throughout the quarter as steep climb in feedstock prices in China pushed back some of its manufacturers from utilizing their full capacities. Amidst the limited supply, several traders were heard offering Polyol cargoes at premium to incur optimum gains from these market uncertainties. With ease in majority of containment restrictions, offtakes of Polyol cargoes from Southeast Asia showcased major revival in comparison to the last quarter. Despite the antidumping probe imposed on the cargoes of foam mattress originated from Southeast Asia, traders reported of steep increment in demand from the US buyers. In the overall Asian market, buyers were seen restocking Polyol cargoes amidst fears of consistent hike in its feedstock prices in the coming months. Projecting a consistent increment since July, Polyester Polyol Ex-Depot prices on CFR India basis were averaged at USD 1942 per MT in the quarter ending September.
Europe
Mixed supply sentiments were observed for Polyol in the European market as the unexpected demand recovery surpassed the overall production of Polyols in the region. The supply of Polyols further tightened with reported shortage of feedstock Ethylene Oxide due to issues prevailing in Shell’s Moerdijk cracker and other upstream outages heard across the region. Higher Polyol prices in Asia made European Polyol producers optimistic over enhanced export demand to Middle East. However, slow recovery in the downstream automotive sector affected the quick revival in the European region.
