Contrary to global market, Polyol prices tumbling in China
- 12-Apr-2022 5:29 PM
- Journalist: Nina Jiang
Polyol prices have been soaring across the globe on account of increased demand for foams from several end-user industries. Polyol finds its usage primarily in Polyurethane manufacturing to produce flexible and rigid foams. As the construction and automotive industries are growing, so is the need for Polyurethane, consequently causing robust demand for Polyol.
In countries like the USA, Xylitol (product of Polyol) consumption has also been on the higher side due to the escalated concerns regarding dental problems. Furthermore, Xylitol is an excellent alternative to sugar and hence a better choice for people with Diabetes. Diabetes is one of the biggest problems in the USA, the offtake of Xylitol is high in the country, resulting in a more robust demand for Polyol. Besides firm downstream demand, increasing Propylene Oxide (feedstock) prices have been driving the Polyol prices upward. In addition, continuing increment in crude oil prices, freight charges, port congestion, and cargoes shortage has been adding to the already augmented price value of Polyol. The evaluated prices of Polyether Polyol (Mw 3000, µ 400-650) in the domestic market of the USA were USD 4584/MT at FOB Texas in the week ending April 8th.
Likewise, the prices of Polyol have also been rising in the countries like India, backed by similar reasons. Thus, in the Indian domestic market, the assessed prices of Polyether Polyol (Mw 3000 & µ 550) were USD 2798.04/MT at Ex-Mumbai during March. While mirroring the pricing trend of India and the USA, the prices of Polyol are inclined in the European countries as well.
However, China observed a fluctuating pricing trend as the Polyol Prices have been fluttering recently. The evaluated prices of Polyether Polyol (Mw 3000) were USD 1915/MT at FOB Qingdao in the domestic market of China during the week, concluding with April 8th. The instability between the demand and supply relationship is the primary reason behind this fluttering price value of Polyol in China. Altogether, the prices of Polyol are propelling worldwide except for China, where it is see-sawing every week.