Polyol prices in Europe increased slightly in December 2025, supported by higher energy and raw material costs, which kept the margins under pressure despite a stable production level. Demand for Polyol showed a mixed but stable pattern. Furniture and bedding manufacturers experienced weak orders, which constrained flexible foam production, but demand for insulation materials in construction and industrial projects gave a substantial boost to rigid Polyols. The automotive industry also contributed to positive utilizations of polyol-based PU foams, supported by strong car sales and increasing demand for electric vehicles. Meanwhile, Polyol production rates were balanced due to steady feedstock supply, and exports were stable but not very strong, as global trade tensions and high energy costs continued to weigh on competitiveness. Looking ahead, Polyol prices will fall in the first half of 2026 due to the slowing demand pressure, more cheap imports from Asia, enough supply of feedstock, and normal shipping, contributing to a moderate price correction.
