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In the first half of July ****, Polyol prices increased slightly in Europe due to steady demand and limited supply. Production in Germany was moderate, while supply was affected by labor shortages, and transport delays across key European hubs. Demand stayed firm in the construction sector, supported by green building projects, while the automotive sector showed weak sales but stable use of Polyols in car seats and interiors. Prices are expected to rise further in the coming weeks as planned plant shutdowns, fewer workers during summer holidays, and stronger demand for coatings in the paint sector put more pressure on supply and encourage sellers to raise prices.

Polyol production rates in Germany were moderate, even though there was a steady supply of feedstock, Propylene Oxide. This was mainly because the prices of upstream propylene and crude oil fell after a ceasefire...