For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Polyol Price Index in APAC declined by 4.8% quarter-on-quarter, settling at USD 1110/MT FOB Osaka by early July 2025. The downtrend was led by a 7.6% price drop in early May amid weak downstream demand, followed by a 1.8% correction in June driven by excess inventories and reduced export volumes due to U.S. tariff impacts.
• Why did the price of Polyol change in July 2025 in APAC? In early July 2025, Polyol prices declined as lower upstream Propylene Oxide values—driven by falling crude oil prices post-Israel-Iran ceasefire—eased production costs. However, weak downstream offtakes from the construction and automotive sectors, combined with logistical challenges and reduced export momentum, contributed to a bearish pricing environment across the region.
• The Polyol Price Forecast for early Q3 2025 points to a stable-to-soft outlook, shaped by fragile demand recovery, cautious procurement, and residual logistical constraints. Price stability will depend on upstream cost movements, inventory levels, and PU demand trends—especially from the automotive sector in China and India.
• The Polyol Production Cost Trend remained volatile through Q2 2025. While input costs eased with declining crude oil prices after the Middle East ceasefire, upstream instability, and regional logistical bottlenecks—such as port congestion, container shortages, and inland freight disruptions—added uncertainty to producer margins and output scheduling.
• The Polyol Demand Outlook in APAC was mixed. The automotive sector saw steady demand from EV and hybrid segments, though affordability concerns and export headwinds capped stronger growth. The construction sector remained weak in Japan and parts of Southeast Asia due to labor shortages, high costs, and sluggish new project launches, though renovation and energy-efficiency work provided limited support.
• Export performance across Asia was inconsistent. While early June saw improved outbound flows to North America and Southeast Asia, overall trade remained constrained by tariffs, shipping route changes, and rising freight costs. Japan’s shipments struggled, reflecting muted auto exports and soft construction-linked demand.
• Domestic consumption in Japan remained subdued in Q2 2025. While Polyol use in PU-based automotive cushioning and insulation applications persisted, soft new orders, demographic pressures, and limited stimulus measures weighed on both automotive and construction procurement. This constrained downstream activity and added to overall market softness.
North America
• Polyol Price Index in North America witnessed a quarterly increase of 1.7%, with FOB Texas quotations rising from USD 2070/MT in early April to USD 2100/MT by the start of July 2025. April saw a 2.9% decline due to post-holiday demand softness, weakened construction activity, and steady inventories. In May, prices further eased by 1.2% amid increased inventories, strained exports, and cost softening from Propylene Oxide. However, June experienced a rebound of 2.1%, driven by firm downstream offtake, trade disruptions, and higher freight rates.
• In early July 2025, the Polyol Price Index held firm at USD 2100/MT FOB Texas. Market stability was supported by resilient demand from the polyurethane industry, particularly in the automotive and infrastructure sectors. Easing feedstock costs and geopolitical stabilization also reduced production and freight-related pressure, contributing to price stabilization.
• According to the Polyol Price Forecast, market values are expected to hover within a stable band through mid-Q3 2025. However, risks of escalation in Middle Eastern geopolitical tensions, tighter global logistics, or hurricane-related supply disruptions could lift prices unexpectedly.
• The Polyol Production Cost Trend remained moderately elevated in Q2 2025. Although early June saw relief from softened Propylene costs, earlier spikes in crude oil prices, driven by Middle Eastern unrest, had already inflated feedstock and shipping costs. Freight rate hikes and container shortages further constrained supply-side economics.
• The Polyol Demand Outlook held steady through Q2 2025. Automotive demand remained robust, backed by a 5% year-on-year rise in vehicle sales and growth in EV production. The construction sector posted mixed performance—while new housing slowed, infrastructure and commercial building activity supported demand for rigid polyols and sealants.
• Polyol Imports and Trade Dynamics in North America remained relatively stable during Q2 2025. Export volumes saw marginal pressure due to geopolitical risks, “Liberation Day” tariff implementations, and trade rerouting. Nonetheless, digitalized inventory systems and regional sourcing helped maintain efficient domestic supply chains.
• Overseas Polyol Producers in Asia and Europe operated at stable-to-moderate rates. However, North American imports were intermittently disrupted by global logistics issues, tariff re-alignments, and cost escalations. The suspension of de minimis exemptions for Chinese imports and port congestion contributed to occasional supply-side tightness, though core bulk trade flows remained functional.
Europe
• Polyol prices in Europe registered a quarterly incline of approximately 3% in Q2 2025, despite monthly fluctuations and persistent weakness in downstream sectors. FOB Hamburg quotations began the quarter at around USD 1600/MT in early April, climbed to USD 1725/MT mid-April, then steadily declined by June-end. Prices dropped 3.7% in May and another 3.7% in June, reflecting weak construction and automotive demand, compounded by logistical disruptions and cautious purchasing behavior. Nonetheless, Q2 closed slightly higher than Q1 due to early-quarter price gains.
• In early July 2025, Polyol prices in Europe stabilized at USD 1600/MT FOB Hamburg, with quotations reflecting balanced market fundamentals. Demand from the polyurethane sector remained steady, particularly from flexible foam applications in automotive interiors and construction insulation. Feedstock Propylene Oxide costs softened following a drop in upstream crude oil prices triggered by a ceasefire between Israel and Iran, easing geopolitical risks and removing the oil risk premium. However, logistics headwinds continued to strain European supply chains, influencing regional pricing dynamics.
• The Polyol Price Forecast for early Q3 2025 suggests a stable-to-firm market trend, dependent on sustained end-use demand, continued feedstock cost relief, and improvements in intra-European logistics, which remain impacted by labor shortages, port congestion, and rising fuel costs.
• Polyol Production Cost Trends in Q2 2025 remained volatile. While falling Brent crude prices—prompted by OPEC+ output increases and easing geopolitical tensions—led to lower upstream Propylene costs, logistics and trade inefficiencies added upward pressure on total production costs. Port strikes, Rhine River transport limitations, and new toll regulations across Denmark and the Netherlands complicated supply and inflated costs.
• The Polyol Demand Outlook remained mixed through Q2 2025. The construction sector saw robust activity in the UK and Eastern Europe, driven by green infrastructure and energy-efficient projects, sustaining demand for insulation-grade polyols. In contrast, Germany and France lagged due to inflationary pressures and investment delays. In automotive, reduced combustion engine vehicle sales offset the growing PU demand from EV interiors, resulting in overall cautious but stable procurement behavior.
• European imports and exports of Polyol experienced delays and constraints throughout Q2, driven by port congestion at Antwerp, Hamburg, and Bremerhaven. Labor shortages, regulatory changes, and inland freight bottlenecks disrupted schedules and increased shipping costs. Additionally, strikes and infrastructure projects affected rail transport, building inventories and complicating export logistics to Asia and North America.
• Demand variation across Europe added complexity to the Polyol market. Germany and France posted subdued activity amid economic pressures and low consumer sentiment, while Italy and Eastern Europe provided pockets of resilience, particularly from automotive interiors and insulation applications. Regional divergences helped cushion overall demand but were insufficient to trigger a strong recovery, leaving the market in a cautiously stable state entering Q3.
For the Quarter Ending March 2025
North America
Polyol prices in North America showed a Positive momentum in Q1 2025, driven by stable production, moderate demand, and supply chain disruptions. In February, Polyol prices increased due to disruptions from an Arctic blast, which caused production setbacks, particularly from "freeze-offs" and port congestion. Despite easing Propylene and propane prices, upstream cost support remained stable, and the automotive sector experienced modest growth with a recovery in vehicle and electric vehicle sales, boosting Polyol demand. The construction sector, however, faced mixed performance, with inflationary pressures, labor shortages, and rising homebuilding costs limiting growth.
Trade disruptions, especially related to tariffs, also played a role in price dynamics. President Trump's measures to raise tariffs, particularly on imports from Mexico and Canada, contributed to pricing uncertainty. The U.S. trade deficit, coupled with concerns over potential tariffs on chemical imports, further influenced market conditions.
By the end of Q1, Polyol prices continued to rise due to ongoing supply chain issues and increased demand from the automotive sector. Despite challenges, Polyol consumption remained steady in the automotive and construction industries. In the latter half of Q1, while supply chain conditions showed slight improvement, uncertainties surrounding trade tensions and rising material costs in construction remained key factors impacting demand.
APAC
During the first quarter of 2025, the Polyol market in Asia experienced a mix of stable production and fluctuating demand. The quarter started with steady Polyol production in China and strong export growth. However, demand from key sectors, particularly automotive and construction, was weak, leading to downward price pressures. In the mid-quarter, Polyol prices fell as stock availability increased after the Lunar New Year holidays, coupled with reduced demand and lower feedstock Propylene Oxide costs. Throughout the quarter, supply disruptions in Asia, such as port congestion and rising crude oil prices, increased production costs and led to higher regional inventories. Despite these challenges, demand for Polyol in Southeast Asia remained steady, with growth in the electric vehicle sector in China supporting Polyol demand for Polyurethane (PU) materials. Conversely, China’s struggling property market and declining automotive production limited demand. In the concluding month, Polyol prices recovered slightly due to supply limitations and rising crude oil prices, but overall demand remained mixed. Trade tensions, particularly U.S.-China tariff disputes, also affected export growth. Overall, Q1 2025 was marked by a volatile market, with strong export performance tempered by regional demand challenges, creating a cautious outlook for Polyol in the coming months.
Europe
Like the North American region, the Polyol market in Europe exhibited a bullish trend, driven by steady production, supply chain disruptions, and consistent demand from the automotive sector. Early in the quarter, production remained stable as the Eurozone’s manufacturing sector showed signs of recovery, despite challenges such as weather disruptions and port delays. These factors contributed to upward pressure on prices. Demand from the automotive industry, supported by growth in production and exports, helped maintain steady Polyol consumption, while the construction sector faced difficulties due to high inflation, material costs, and interest rates. In the mid-quarter, geopolitical factors and extreme weather events, including an Arctic blast in North America, led to disruptions in Propylene Oxide supplies, further increasing prices. Additionally, labor strikes at major European ports, such as Rotterdam and Le Havre, caused delays and rerouted shipments, adding to supply strain. Despite these challenges, the automotive sector’s steady growth and recovery in the Italian construction market helped support demand for Polyol-based materials. Towards the end of Q1, Polyol prices continued to rise due to persistent supply chain issues and steady demand in the automotive and construction sectors. The market remained cautious, influenced by ongoing geopolitical tensions and trade disruptions, but growth in electric vehicle production and improving conditions in Italy's construction sector provided optimism.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the Polyol market saw a 6% decrease compared to the previous quarter, driven by mixed demand and supply chain disruptions. Polyol production remained stable, supported by moderate feedstock availability, although fluctuations in Propylene Oxide prices and upstream Propylene costs affected cost dynamics. Exports slowed, particularly to Europe and Australia, due to weaker global demand and a downturn in U.S. manufacturing activity.
Demand for downstream PU materials from the construction sector was sluggish, influenced by high inventory levels and rising material costs, particularly in the furniture industry. Conversely, the automotive sector showed resilience, with increased vehicle sales supporting steady Polyol demand.
By December, despite stable domestic demand in the automotive and coatings sectors, Polyol exports declined, with new business orders and international market activity weakening. The winter season saw higher demand for heating, pushing up Propane prices and providing some support for Polyol production costs. However, with weaker global demand and slower export growth, the market experienced a 6% decline compared to the previous quarter.
APAC
In the fourth quarter of 2024, the Polyol market in Japan experienced no change in prices compared to the previous quarter, with stability across demand and supply dynamics. Production remained steady, supported by moderate feedstock availability, and feedstock Propylene Oxide prices stabilized amid fluctuations in upstream prices. Shipping disruptions from Typhoon Kong-Rey and weak Far East exports slightly impacted supply levels, but the overall supply to importers remained manageable. Demand for Polyol showed mixed results. The construction sector saw strong demand, driven by a significant increase in construction orders, while the automotive sector faced a decline due to reduced vehicle sales. Despite these mixed trends, Polyol prices remained unchanged due to steady production and moderate costs influenced by rising crude oil prices. Supply chains gradually stabilized, and although export volumes were lower and automotive demand weakened, the overall market conditions did not lead to significant price fluctuations. As a result, Polyol prices held firm through the quarter, reflecting a balance between stable production and moderated demand from key sectors.
Europe
Like the North American region, in the fourth quarter of 2024, the Polyol market saw a 6% decline compared to the previous quarter, reflecting ongoing challenges in demand and supply dynamics. Polyol production remained stable, supported by moderate feedstock availability, although disruptions at key European ports and rail congestion impacted supply chains. Feedstock Propylene Oxide prices held steady due to fluctuations in upstream crude oil prices and shifting demand from downstream industries. Demand for Polyol varied across sectors. The construction industry continued to face subdued demand, driven by reduced activity and economic uncertainty. In contrast, the automotive sector saw increased demand, particularly due to higher new car registrations. However, this was not enough to offset the overall market decline. Polyol prices remained relatively stable, with minimal fluctuation driven by supply chain disruptions and moderate feedstock availability. The overall Eurozone manufacturing downturn and inflationary pressures contributed to weakened demand in key sectors. In the construction sector, activity remained sluggish, while automotive demand, though slightly stronger, also showed signs of slowing. These factors combined led to a 6% decrease in Polyol prices from the previous quarter.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the Polyol pricing in the North American region remained stable, with no significant fluctuations observed. Various factors contributed to this stable pricing environment. The demand for Polyol was moderate, primarily driven by consistent consumption in downstream industries such as construction and manufacturing. Supply levels were adequate to meet this demand, leading to a balanced market scenario. Additionally, stable cost support from feedstock Propylene Oxide further contributed to the equilibrium in Polyol prices.
In the middle of the third quarter, Polyol production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations marginally, however the market dynamics remain stable.
With a percentage change of -24% from the same quarter last year and no change from the previous quarter in 2024, the market exhibited a sense of stability. The price remained constant between the first and second half of the quarter, indicating a lack of significant fluctuations. The quarter-ending price of USD 2140/MT of Polyether Polyol MW 3000, µ 400-650 FOB Texas in the USA reflected the prevailing stable pricing sentiment in the region.
APAC
In Q3 2024, the Polyol market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased upstream Propylene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the upstream Propylene supplies and Polyol production rates. Polyol prices fluctuated and rose marginally, and the price comparison between the first and second half of the quarter showed a negative change of 1%. Towards the end of the quarter, the increased availability of feedstock Propylene oxide supplies, driven by improved refinery operations and Crude Oil availability amid a resumption of Crude Oil supply from Libya in September 2024, negatively impacted the production costs. Simultaneously, offtakes for moderately low from the PU segment during the period. Conclusively, from the previous quarter in 2024, prices fell by 8%, indicating a downward trend. Polyether Polyol MW 3000 FOB-Osaka prices in Japan settled at USD 1230/MT at the end of quarter 3 of 2024.
Europe
During the third quarter of 2024, the European Polyol market was driven predominantly by a confluence of factors impacting supply and demand dynamics. Throughout the quarter, the sluggish demand from the downstream industries, particularly polyurethane manufacturers, due to reduced construction activities and a shift towards bio-based materials negatively influenced the market dynamics. Moreover, the oversupply situation, exacerbated by cautious purchasing behavior amid rising inflation and economic uncertainties, further pressured prices. The automotive sector, traditionally a significant consumer of polyurethane products, also contributed to the weakened demand as vehicle sales remained subdued. Additionally, the manufacturing sector faced challenges, with the Eurozone Manufacturing PMI indicating declining new orders and rising costs, further dampened demand. Supply-side dynamics also played a role, as supply availability improved post-summer holidays, yet demand failed to match this increase, exacerbating inventory levels. Seasonality played a crucial role, as the summer holidays typically result in reduced industrial activities, subsequently decreasing demand. Consequently, the first and second half of the quarter saw a 4% decrease, reflecting a consistent negative pricing environment throughout the period. The quarter concluded with a Polyether MW 3000, µ 400-650 FOB Hamburg price at USD 1560/MT in Germany, after an overall 11% drop from the last quarter's prices, underscoring the negative sentiment pervading the Polyol market, driven by both external economic pressures and internal market dynamics.
Frequently Asked Questions (FAQs):
1. What is the current price of Polyol in APAC?
By early July 2025, Polyol prices in the APAC region stood at approximately USD 1110/MT FOB Osaka.
2. What is the current price of Polyol in North America?
By early July 2025, Polyol prices in the USA stood at approximately USD 2100/MT FOB Texas.
3. What is the current price of Polyol in Europe?
By early July 2025, Polyol prices in Germany stood at approximately USD 1600/MT FOB Hamburg.
4. Why did Polyol prices change in July 2025?
o Asia-Pacific (APAC): Prices declined in early July due to softening upstream Propylene Oxide costs following falling crude oil prices post Israel-Iran ceasefire. Weak downstream demand from construction and automotive sectors, logistical bottlenecks, and sluggish export activity further pressured the market.
o North America: Prices stabilized as steady automotive and infrastructure demand offset earlier softness. Easing feedstock and freight costs helped maintain price levels amid lingering geopolitical and trade-related risks.
o Europe: Prices held steady after retreating from April peaks, supported by balanced fundamentals. Stable PU sector demand and lower production costs due to easing oil markets were tempered by continued logistical inefficiencies and sluggish offtakes from key downstream sectors.
