High Supplies Compel the US Polyol Prices to Fall in March 2023
- 24-Mar-2023 5:00 PM
- Journalist: Sasha Fernandes
The Polyol price trend is bearish from the second half of Q4 of 2022, and the product costs are consistently decreasing in the USA. Prices fell amid declined product orders from the importers amid the surplus of Polyol's supplies in the market. Simultaneously, during March, Polyol's inventory levels rose amid improvement in supply chain activities.
Since the beginning of the month, Polyol prices have decreased by almost 1.5%. As per the data sources, at the end of the week concluded on March 17, 2023, Polyol MW 3000, μ 400-650 prices were observed at USD 4350/MT.
Buyers were also conscious while making any purchases amid increasing interest rates by the US Federal Reserve to curb inflation. Consequently, the manufacturing activities contracted in the country, and the manufacturing Purchasing Managers Index declined in the USA during February 2023. However, as per the sources, the Federal Reserve had considered stopping further hikes after witnessing turbulences in the financial sector. However, due to the highest inflation rate in the generation, the US Federal Reserve continued its interest rate hikes to fight inflation.
LyondellBasell reported the successful activation of Propylene Oxide and Tertiary Butyl Alcohol (TBA) facilities in Channelview, Texas, on March 14, 2023. It is the World's largest Propylene Oxide plant, with a production capacity of 470 KTPA. The production rates of Propylene Oxide have risen in the country, causing the decline in the feedstock Propylene Oxide prices over the past few weeks, and simultaneously due to this, the production costs of Polyol have decreased.
As per ChemAnalyst, "Polyol price trend will improve, and prices will rebound in the upcoming month of 2023. The inventory levels will deplete with the increase in consumption levels from Polyurethane industries as demand for Polyurethane foam and sealants are likely to rise in the automotive and construction sector. While increasing Fed interest hikes will strengthen the dollar value in the international market, importers will likely reconsider while making export orders from the USA."