Strong Demand for Polyurethane Driving the Global Polyol Market
- 25-Mar-2022 6:02 PM
- Journalist: Kim Chul Son
The demand for Polyurethane comes from various end-use industries, which in turn propel the Polyol market as Polyol is primarily used to make Polyurethane. Different types of Polyols exist in the global market; however, the consumptions of Polyether Polyol and Polyester Polyol are the strongest. The demand for Polyurethane majorly comes from home furnishing, automotive, packaging, and construction industry to form flexible or rigid foams.
Asia-Pacific is the fastest-growing region in the Polyol market owing to the increased demand for Polyol in the automotive sector. At the same time, increased consumption of polymers is another reason driving the need for Polyol in the Asia-Pacific region. Europe follows Asia-Pacific in terms of Polyol consumption. The demand for Polyol is vital in the European market due to the enhanced demand for inexpensive energy-efficient home insulations. The growing automobile and construction sectors in America raised the demand for Polyol to reduce the manufacturing cost in several industries. Polyurethane-based foams are readily utilized in electronics and electrical sectors as well. Furthermore, the increased production of bio-polyols also soared the demand for Polyol in the global market.
The trade restriction imposed on different ports pushed the price of several commodities, including Polyol on the higher side. In addition, the hike in crude oil prices amidst the Russia-Ukraine war is responsible for escalating the upstream cost of Polyol, resulting in its rising prices. Moreover, the upsurge in propylene oxide (Feedstock) prices has supported the intensified price value of Polyol, as well as the shortage of shipment containers could be another reason contributing to the price soar of Polyol.
According to ChemAnalyst, “The prices of Polyol would keep surging in the upcoming weeks as the downstream demand for Polyurethane is not likely to settle in the near future. Simultaneously, the continued hike in crude oil and propylene oxide prices would be another few factors supporting Polyol price rise.”