Polyols Prices Update: USA Trades at USD 2,029/MT While China Stays Lower at USD 1,261/MT

Polyols are multifunctional organic compounds containing multiple hydroxyl groups, positioning them as key intermediates in various industrial applications. They are fundamental raw materials for producing polyurethanes, widely utilized in insulation, flexible and rigid foams, automotive parts, furniture, coatings, and consumer products. Their prices are highly sensitive due to reliance on petrochemical feedstocks like propylene oxide and ethylene oxide, making them vulnerable to changes in crude oil prices, energy expenses, and overall supply chain dynamics.

Global Market Overview:

Globally, the polyols industry was valued at USD 30.97 Billion in 2025. Market projections indicate steady growth, with the industry expected to reach USD 47.90 Billion by 2034, representing a compound annual growth rate (CAGR) of 4.96% from 2026-2034. The market is influenced by the growing demand from the industries of insulation and construction, the rapidly growing automotive industry requiring lighter polyurethane parts, and the growing furniture production. The increased use of polyurethane materials by the various industries is also an influencing factor for the growth of the market. Emerging economies are also acting as major drivers to fuel the consumption and thus the growth of the polyurethane market.

Polyols Price Trend Q3 2025

Regional prices (USD per MT) and QoQ changes vs Q2 2025:

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What Moved Prices:

• USA: Polyols prices eased slightly to USD 2,029/MT in September 2025. Balanced demand from construction, automotive, and flexible foam sectors limited aggressive purchasing activity. Enhanced raw material availability combined with stable manufacturing operations maintained adequate supply levels. Reduced feedstock-related cost pressures contributed to softening price sentiment throughout the quarter.
• China: Prices declined to USD 1,261/MT in September 2025. Downstream sectors, particularly insulation and furniture manufacturing, operated cautiously amid subdued domestic consumption patterns. Abundant supply from continuous plant operations and steady feedstock availability exerted downward pressure on market sentiment. Improved logistics performance facilitated smoother material deliveries, reinforcing the declining price trajectory.
• Thailand: Prices strengthened to USD 2,181/MT in September 2025. Regular purchase volumes from local construction and consumer goods industries helped improve market fundamentals. Occasional shortages were seen because of planned stoppages for maintenance work at various production units. High freight and material costs helped increase prices in supplier quotes during the quarter.
• Brazil: Prices advanced to USD 1,764/MT in September 2025. Robust demand from furniture, automotive components, and packaging industries elevated procurement volumes. Domestic supply encountered intermittent constraints due to extended lead times for imported feedstocks. Escalating production costs, including energy and chemical inputs, further contributed to upward price movements in local markets.
• South Africa: Values increased to USD 1,723/MT in September 2025. Sustained purchasing from construction, appliance, and flexible foam sectors maintained firm market conditions. Supply tightened periodically due to logistical inefficiencies and extended import-processing cycles. Elevated freight and warehousing expenses continued shaping market sentiment, supporting moderate upward price trends.

Drivers Influencing the Market:

Several factors continue to shape polyols pricing and market behavior:

• Feedstock Cost Volatility: Fluctuations in propylene oxide and ethylene oxide prices directly influence polyols production economics. Upstream petrochemical dynamics, refinery output variations, and crude oil price movements create significant cost pressures across the value chain.
• Construction Sector Activity: Building and infrastructure development drives substantial polyols demand for insulation applications. Regional construction cycles, housing market conditions, and government infrastructure investments significantly impact consumption patterns and pricing.
• Automotive Industry Dynamics: Vehicle manufacturing, particularly electric vehicle production, generates consistent demand for polyurethane components. Lightweighting initiatives and interior comfort requirements sustain automotive sector consumption.
• Logistics and Supply Chain Factors: Shipping costs, port congestion, and transportation network efficiency affect delivered material costs. Import-dependent markets experience amplified price sensitivity to freight rate fluctuations and supply chain disruptions.
• Energy Cost Pressures: Manufacturing facilities require substantial energy inputs for polyols production. Regional energy price variations and availability influence production economics and create geographic pricing differentials across global markets.

Recent Highlights & Strategic Developments:

Recent strategic moves within the industry further illustrate evolving dynamics:

• In November 2025, Monument launched its inaugural production of polyols from renewable carbon sources within the United States. This is through its production line referred to as “Poly-CO2.” This innovation is a world-first project that uses Econic Technologies’ IP to convert CO2 into polyols that can be used to create high-performance polyurethane goods such as furniture, mattresses, and paints. This technology ensures that there is a reduction of 20-30% of global warming potential.

Outlook & Strategic Takeaways:

Looking ahead, the polyols market is expected to gear up towards sustainable growth, driven by the rise in construction sector activities, developments in the automobile sector, and growing usage levels of polyurethane materials. Regional price disparities will remain driven by local market fundamentals and availability of raw materials.

To navigate this complex landscape, stakeholders should:

• Monitor Feedstock Markets: Track propylene oxide and ethylene oxide price movements closely as these upstream materials directly influence polyols production costs. Establish early warning systems for petrochemical market disruptions to anticipate pricing shifts.
• Diversify Supply Sources: Develop relationships with multiple suppliers across different geographic regions to mitigate supply concentration risks. Consider qualifying alternative producers in emerging manufacturing hubs to enhance procurement flexibility.
• Optimize Procurement Timing: Leverage regional price differentials by timing purchases strategically. Markets showing declining trends may present favorable buying opportunities, while rising markets warrant accelerated procurement decisions.
• Track Construction Indicators: Monitor building permits, housing starts, and infrastructure spending announcements as leading demand indicators. Strong construction activity typically precedes increased polyols consumption for insulation applications.
• Evaluate Sustainable Alternatives: Assess emerging bio-based and carbon-capture polyols offerings as sustainability requirements intensify. Early adoption of lower-carbon alternatives may provide competitive advantages and regulatory compliance benefits.
• Hedge Currency Exposure: Implement appropriate currency hedging strategies for cross-border transactions, particularly in import-dependent markets experiencing exchange rate volatility that amplifies delivered material costs.
• Plan for Logistics Variability: Build inventory buffers and develop contingency logistics arrangements to manage potential shipping disruptions. Port congestion and freight rate volatility remain ongoing supply chain challenges requiring proactive management.

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