PU Resin Prices are Likely to Witness Positive Sentiment in Europe at the start of Q2 2023

The Polyurethane (PU) Resin market witnessed stable sentiments with slight growth in the European region throughout March 2023. Ample supplies and a slow revival in demand in the automotive sector led to a stable price trend for PU Resin in March 2023. The PU Resin market in Europe is currently facing market-related uncertainties and tightening consumer budgets due to inflation and rising interest rates. Therefore, market players remained cautious about downstream automotive inquiries recovery.

The PU Resin market in Europe is experiencing moderate growth, driven by a slow increase in the offers from the automotive sector. However, the confidence level in transactional activity was minimal in March 2023 as overseas purchase orders were postponed. The European economy has persistently slowed down this month, leading to dented consumer and business confidence in PU Resin. The price of PU Resin for flexible foam grade was assessed at USD 2870/MT FD Hamburg (Germany). Moreover, the fall in the upstream crude oil values impacted the monthly discussions of the PU Resin in March 2023 in Europe.

Additionally, the impact of the Turkish earthquake in March 2023 was the key concern of enterprises in Europe, as Turkey is the primary exporter of PU Resin. Currently, market players are assessing the earthquake's impact on production, consumption, employment, and other aspects. The downstream demand from the automotive industry for PU Resin is expected to show a revival in the European market in April as it is believed the current monetary policy can support the post-Turkish Earthquake recovery by maintaining financial stability.

As per ChemAnalyst, the PU Resin market is expected to gain momentum in the European market in April 2023, owing to the reviving economy and ease in the supply chain disruptions. The downstream demand from the Automotive industry is likely to grow due to domestic consumption with a rise in consumer confidence in April 2023 coupled with improvement in the operational activities in the PU Resin operating firms. Meanwhile, export inquiries for PU Resin are expected to support the commodity price momentum in Q2 of 2023.