Despite Weak Demand, Polyurethane Resin Prices Fluctuates Globally

Polyurethane Resin (PU) prices continued to witness mixed market sentiments with a persisting downturn in demand from the downstream sector in the global market. As per the latest insights, soaring energy prices caused a fall in commodity production while increasing import pressure. The offtakes in the downstream automotive and construction industries remained weak for Polyurethane Resin throughout November 2022 to support the pricing trajectory of the product.

Besides, European Polyurethane Resin prices experienced an upward trend owing to the escalating input costs in November 2022. On the demand side, domestic demand from the downstream industries remained weak for the commodity amidst high inflation. Moreover, downstream output declined, as the November survey showed that the German chemical industries scaled back about 25% of the production activities.

Besides, Polyurethane Resin prices in the Chinese market experienced a drop of nearly 1% in the week ending 9 December 2022, backed by the lower offtakes in the domestic market amidst weak downstream demand and stable feedstock Toluene Diisocyanate (TDI) prices. The commodity market suffered sharp falls at the end of this week on concerns about lower downstream automotive offers. At the same time, an increase in the demand for the product is expected due to the launch of the 1000th Polyurethane wind turbine blade around the globe in January 2023 by Covestro.

As per ChemAnalyst anticipation, prices of Polyurethane Resin may further increase in January 2023 owing to the rebound in demand from the downstream sectors across the globe. Moreover, expected volatility in the feedstock TDI prices is anticipated to affect the price of Polyurethane Resin. Meanwhile, the Polyurethane Resin prices in December will likely show a declining trend in the European market due to a rise in inventory levels and muted demand fundamentals owing to the cut in the downstream production activities. Furthermore, manufacturers will likely destock at lower margins towards the end of the year.