Global polyol prices have experienced a dramatic upward surge recently, shaking the whole polyurethane raw material supply chain. The core driver originates from the tight supply of propylene oxide (PO), the primary upstream feedstock for polyether polyols. Multiple PO production facilities across Europe and the Middle East entered scheduled maintenance in Q3 2026, while unplanned outages further reduced effective operating rates, cutting merchant PO availability and directly lifting polyol production costs.
Rising crude oil and natural gas prices serve as another fundamental factor. European chemical manufacturers continue to bear elevated energy bills; some polyol producers have lowered plant load rates to mitigate losses. Besides raw material and energy pressure, global logistics disruption pushes bulk chemical freight higher. Red Sea shipping rerouting and extended transit cycles increase landed costs for imported polyols in Asia, Middle East and Africa markets. Downstream demand from automotive interior foam, home appliance insulation and furniture sectors stays steady, and buyers rushed to replenish inventories amid supply concerns, amplifying the price rally.
Market analysts forecast polyol will maintain a high-level oscillation trend for the rest of 2026 rather than a quick fall. The price will stay supported as long as PO supply tightness persists. Downstream manufacturers will keep adopting hand-to-mouth purchasing to control inventory risk. Any resumption delay of overhauled PO plants or further energy price spikes may trigger another round of upward price movement. If new PO capacity comes online smoothly and crude oil cools down, polyol prices may gradually retreat moderately from current peaks in early 2027.