Summary of Chinese Rigid Polyether Polyol Market in H1, 2017

In H1, 2017, the Chinese rigid polyether polyol market showed an M-shaped trend first and then fluctuated upwards. The correlation index between the rigid polyether polyol market and PO market was around 0.90, which was lower than those in precious years. In H1, 2017, the average price was RMB 10,204/mt, up 24.87% year on year. The lowest price was RMB 9,450/mt in early May and the highest price was RMB 11,100/mt in H1 February.

Phase One: The Rigid polyether polyol Market Showed an M-Shaped Trend from January to early May.

In January, the PO market rebounded slightly as the haze influenced the production. In mid-January, the PO market jumped on the tight supply and the Chinese rigid Polyether Polyol market followed the uptrend. In H2 January, the overall trading became thin on the coming Spring Festival. At the beginning of February, though the PO market inched down, Chinese rigid polyether polyol producers raised offers on their poor profits.

In mid-February, the PO market decreased fast, which weighed on the Chinese rigid polyether polyol market. At the end of February, the PO market rebounded, but the Chinese rigid polyether polyol market remained stable.

In March, the Chinese rigid polyether polyol market increased in most of time. In early March, the PO market rebounded as the inventory moved down. The Chinese rigid polyether polyol market went up slightly. In H2, March, the PO market boomed as some units underwent maintenance and the production of chlorine was influenced by the environmental protection inspection. However, the Chinese rigid polyether polyol market just inched up on the tepid market.

The Chinese rigid polyether polyol market mainly declined from April to early May. In April, the PO market slightly influenced the rigid polyether polyol market. In H1 April, the PO market was at a high level, but the rigid polyether polyol market was largely stable as the downstream demand was flat. In H2 April, the PO market slumped, but the rigid polyether polyol market just inched down considering their negative profits. At the end of April, the PO market inched up while the rigid polyether polyol market was largely stable. In early May, the PO market went down on the weak demand and increasing supply, and the Chinese rigid polyether polyol market went down.  

Phase Two: The Chinese Rigid Polyether Polyol Market Fluctuated Up from Mid-May to end-June.

In mid-May, the PO market saw tight supply as some units in North China were shut. The PO market went up and this uptrend lasted to the end of May. Supported by the production cost, the Chinese rigid polyether polyol market went up. In H1 June, the PO market went down on the increasing supply. And the Chinese rigid polyether polyol market followed the downtrend. In mid-June, the PO market rebounded as some units started undergoing maintenance. The Chinese rigid polyether polyol also went up. But, the downstream demand was soft. Polymetric MDI prices jummped and the downstream buying interest was restricted.