POE butene-based prices showed relative stability in mid-February, following a notable softening throughout January 2026, when values fell about 5.6% month-on-month. Early-month rates remained steady due to consistent Gulf Coast production, but overall demand trends including automotive slowdown and converter destocking applied downward pressure. By mid-February, spot activity balanced cautious buying with selective replenishment, keeping headline POE pricing largely unchanged.
POE butene-based prices moved into mid-February largely unchanged, but the monthly picture for January 2026 showed meaningful weakness as prices decreased 5.60% month-on-month. Early January pricing was range-bound amid steady operating rates on the Gulf Coast, but demand dynamics through the month pushed values lower overall. Market participants pointed to converter destocking and softer automotive offtake as primary drags, even as ethylene availability remained sufficient to support continuous polymerization. Per weekly assessment data, POE spot prices were effectively stable in mid-February, reflecting a balance between lingering destocking and pockets of end-use replenishment.
Demand was uneven across end markets. Automotive offtake was notably soft, curtailing POE resin consumption for impact-modified interior and exterior components, lightweight panels, hoses, seals and trims; this aligns with US light-vehicle sales of 1,104,953 units, down 25.17% month-on-month. In contrast, photovoltaic and solar adoption continued to support volumes via regular POE offtake for encapsulant film and growing use in high-efficiency modules and multilayer film lines. Flexible packaging procurement remained steady under contract terms, while construction and infrastructure spending provided moderate support—real estate investment is expected to rebound roughly 562 billion (about a 16% uptick) in 2026. Dow’s Packaging & Specialty Plastics segment sales at 4.7 billion, down 11% year-on-year, further illustrates muted polymer demand in some channels.
On the supply side, domestic production of POE was stable. Gulf Coast producers operated continuously without unplanned shutdowns and merchant units maintained normal operating rates, keeping merchant availability broadly sufficient. Feedstock ethylene was available in adequate volumes and consolidated in a range through January, which moderated margin pressure for POE producers. Meanwhile, converters pared inventories to reduce financing costs, increasing spot availability and amplifying downward pressure of POE pricing on January values. Logistics and port operations functioned normally, leaving no acute supply-side disruptions to counterbalance weak offtake.
As per the ChemAnalyst anticipations POE price is expected to showcase bullish bias into February driven by anticipated ramp-up in automotive assembly for spring model launches, modest upward pressure on ethylene from refinery and cracker activity, and improved infrastructure and industrial procurement. This outlook is based on current market trends and remains subject to market conditions, particularly the pace of automotive recovery and the extent to which converters rebuild inventory ahead of seasonal demand for HVAC and appliance manufacturing.
