High Electric Vehicle Sales Drive Poly Alpha Olefin Prices Up
- 06-Jun-2022 4:08 PM
- Journalist: Timothy Greene
Poly Alpha Olefin (PAO) prices have been rising at a steady pace across various regions and markets all over the world. The price hikes can be primarily traced back to the booming downstream Electric Vehicles (EV) market. The global demand for Poly Alpha Olefin is very high. It is not only able to drive PAO prices but also increases the demand for all upstream products like Linear Alpha olefins in various markets.
Despite representing a small section of the current automobile industry, the EV market has been performing very well and positively impacting the PAO prices. EV sales in the US during the first quarter of 2022 were record-breaking. Many car manufacturers are struggling to keep up with demand as the registration of battery-powered vehicles jumped by 60% in the first quarter of 2022. Even while the overall vehicle industry is witnessing a decline in sales in the US, the extraordinary performance keeps the PAO prices up since EVs require more lubricants than fossil-fueled powered vehicles. The market trend continued even after the first quarter. The US trails behind the Chinese and European markets regarding EV sales, so the sales number of EVs in the US during Q1 shows that the US can overtake other countries' markets, suggesting an increase in PAO's demand. The high number sales trend continued even after Q1 of 2022 in the US in FORD announced the demand raise continued in April 2022.
As per ChemAnalyst, the price of Poly Alpha Olefin in the US will continue rising as there is no slight indication of Electric Vehicle sales slowing down. The poor sales of the overall vehicle sector didn't weigh the prices down due to high sales hikes in EVs. PAO prices will also rise with the increasing demand and production of EVs in the US.