Contrasting Propylene Oxide trends across the globe
- 31-Mar-2022 5:18 PM
- Journalist: Robert Hume
Propylene Oxide (PO) is primarily used to produce propylene glycol and polyurethane. The staggering demand for these downstream commodities has impacted the Propylene Oxide market in several nations. The demand for polyurethane comes from the packaging, construction, and automotive industries. As the construction sector is growing worldwide, the need for polyurethane is rising as well, soaring the price value of Propylene Oxide. Another downstream product, propylene glycol, mainly finds its usage in antifreeze industries.
Skyrocketing crude oil prices also supported the price rise of Propylene Oxide in western countries amidst Russia-Ukraine war tensions. Furthermore, increasing freight charges and continued cargoes shortage are a few other factors contributing to the price hike of Propylene Oxide. In addition, the conflict between Russia and Ukraine has further inflated the economy of several western nations, leaving its impact on the prices of several commodities, including Propylene Oxide.
While the market for Propylene Oxide is propelling in the western countries, it depicts a fall in the Asian countries, particularly in East Asian countries. As summers have approached in the Asian countries, the antifreeze industries are crippling due to a lack of usability. Consequently, causing the fall in propylene glycol demand, followed by the dipping demand for Propylene Oxide. The market trend for propylene Oxide was contradictory in different regions across the globe, backed by valid reasons. Altogether, the need for polyurethane and propylene glycol, along with fuelled crude oil prices, were the factors majorly impacting the PO market.
According to ChemAnalyst, “The propylene oxide prices are expected to surge further surging, except for the Asian countries. Strong demand for polyurethane and propylene glycol and growing crude oil prices are the prime factors supporting the Propylene Oxide price rise. However, Asian countries are most likely to witness a continuing fall in PO prices due to increased temperature, hampering the antifreeze industries.”