Tetrahydrofuran prices across Asia have remained largely stagnant, as the trend over the last week has been followed. The major among the major cause of this price stability is the stable price of butanediol, the principal feedstock for making tetrahydrofuran. As butanediol prices are stable, tetrahydrofuran production costs are maintained a balance and the prices don’t fluctuate much.

This price stability of tetrahydrofuran is tracking closely recent events within the broader chemical supply chain generally, and more particularly within the polymer and the polytetramethylene ether glycol (PTMEG) industry. Tetrahydrofuran is a solvent of importance used in PTMEG production, an important monomer utilized in producing spandex fibers as well as other high-performance polymers. Chinese customs statistics report a sharp increase in spandex exports, more than 21% higher year-on-year during early 2025. The growth reflects sustained demand within the region, particularly in Japan, for tetrahydrofuran which is heavily dependent upon Chinese imports of the solvent.

Japanese market analysts report that firm demand for tetrahydrofuran, supported by China's stable export and production levels, has helped keep tetrahydrofuran prices at a stable level. Logistics and inventory optimization also help stabilize the situation. Although prices for spandex exports have declined, squeezing producers' margins, tetrahydrofuran consumption is stable, reflecting stable production levels in downstream industries such as polymer and PTMEG manufacture.

However, analysts caution that the market for tetrahydrofuran is yet vulnerable to disruptions. Changes in feedstock availability, crude oil price fluctuation, or escalating geopolitical tensions are capable of causing disruption to the existing balance and leading to volatility in tetrahydrofuran prices.

Meanwhile, the shipbuilding industry of Japan is gazing towards fresh opportunities in the wake of evolving geopolitics. The NYK chairman recently urged Japanese shipyards to capture a 20% market share in the world, seeing US suggestions to impose port charges on Chinese ships as a chance to regain competitiveness. The recent dip in new orders for Chinese shipyards indicates market uncertainty, providing an opportunity for Japanese shipyards to win new orders. However their ability to maximize these opportunities is eroded by limited capacity, shortages of manpower, and dispersed ownership.

Supply chain disruptions have been worsened by a cyberattack on Japan's largest trading port, the Port of Nagoya—Japan's largest trading port and a critical hub for export products like auto goods. The cyberattack disrupted container terminal operations, slowing the movement of shipments and showing vulnerabilities in critical infrastructure that may further complicate tetrahydrofuran and other chemical cargo transportation.

Together, these forces—from stable feedstock costs and polymer demand in the markets to geopolitical movements and port disruptions—spell out the complex climate that is driving tetrahydrofuran prices and supply chains in Asia today.