Polyester Polyol Market Intelligence Report (Recent Dynamics)

I. Price Trends
- National Average Price: As of May 22, 2026, the national average price of polyester polyol in mainstream markets remains stable at RMB 12,300 per ton, with no fluctuations observed for several consecutive days.
- Regional Market Dynamics:
- East China Market: From May 11 to May 20, 2026, the price range for polyester polyol stood at RMB 12,300–12,800 per ton, with quotations remaining steady.
- Shandong & North China Markets: From May 9 to May 19, 2026, negotiated prices for AA/BG-based polyester polyol ranged around RMB 12,500–13,500 per ton, while AA/EG-based grades traded at approximately RMB 11,500–12,000 per ton; overall price ranges remained stable.
- South China Market: Prices aligned with those in Shandong and North China, with quotations holding steady.
- International Market Dynamics: Stepan Company announced that, effective July 1, 2026, it will increase prices for STEPANPOL? and TERATE? rigid-foam polyester polyols used in the Americas by USD 0.185 per pound—further elevating market expectations for international pricing.

II. Supply-Demand Balance
- Supply Side:
- Domestic polyester polyol production capacity continues to expand steadily, supported by continuous technological improvements and a comprehensive portfolio of product specifications, largely satisfying domestic demand.
- Leading enterprises—including Wanhua Chemical and BASF—operate large-scale production facilities, ensuring stable supply to meet the bulk raw material requirements of major downstream manufacturers.
- Green polyester polyols (e.g., those derived from PTA residue) are gaining rapid market share: their proportion reached 12.3% in 2025 and is projected to exceed 16% in 2026, emerging as a key growth driver.
- Demand Side:
- Downstream polyurethane industries exhibit steady demand growth, particularly for rigid foam, flexible foam, and spray-applied foam applications requiring polyester polyol.
- Robust demand persists for high-performance polyester polyols in building insulation, cold-chain logistics, and industrial thermal insulation sectors.
- Rising demand is also observed in Coatings, Adhesives, Sealants, and Elastomers (CASE) applications—especially in automotive lightweighting and industrial protective coatings.

III. Cost Structure & Profitability
- Raw Material Costs:
- Core feedstocks such as purified terephthalic acid (PTA) and ethylene glycol (EG) face significant price volatility driven by international oil prices and geopolitical factors. Recent disruptions in the Strait of Hormuz have tightened crude oil supply, resulting in elevated and volatile PTA prices—exerting upward pressure on polyester polyol production costs.
- Green polyester polyols (e.g., those produced from hazardous waste resource recovery streams like PTA residue) benefit from enhanced price stability and lower production costs—typically 20–30% below conventional products—due to the utilization of low-cost, recycled feedstocks.
- Enterprise Profitability:
- Producers using conventional manufacturing routes experience pronounced profit margin compression due to raw material price volatility.
- Green polyester polyol manufacturers enjoy significantly stronger profitability thanks to cost advantages. For instance, Shanghai Liansheng Chemical leverages hazardous waste resource recovery pathways to deliver products priced 20–30% lower than traditional alternatives—helping downstream customers reduce raw material expenditures.

IV. Market Developments & Policy Impacts
- Market Developments:
- Stepan’s price hike in the Americas reflects broad-based cost pressures in international markets and may impact Chinese exporters targeting that region.
- Domestic polyester polyol prices remain stable overall; however, leading enterprises are reinforcing market leadership through technological innovation and capacity expansion, while smaller players confront intensifying homogenization-driven competition.
- Policy Impacts:
- Tightening global environmental regulations are accelerating the substitution of conventional materials with bio-based polyester polyols. The global bio-based polyester polyol market revenue is projected to reach USD 1.955 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.8%.
- Domestically, China’s “Dual Carbon” (carbon peak and carbon neutrality) strategy is deepening implementation, driving rapid adoption of green polyester polyols—particularly those derived from hazardous waste resource recovery—which align well with national policy direction and hold strong long-term market potential.

Analysis, Outlook & Forecast

I. Short-Term Price Outlook
- Domestic Market: Polyester polyol prices are expected to remain stable in the near term, with the national mainstream market average holding around RMB 12,300 per ton. Regional price bands are anticipated to exhibit minimal volatility, and quotations will stay steady.
- International Market: Following Stepan’s announced price increase, international polyester polyol prices—particularly for exports to the Americas—are likely to trend upward, presenting opportunities for Chinese exporters.

II. Medium-to-Long-Term Market Trends
- Demand Growth: Sustained expansion in downstream polyurethane demand—coupled with increasing requirements for high-performance polyester polyols in building insulation, cold-chain logistics, and industrial thermal management—will drive continued medium- to long-term market growth.
- Green Transition: Green polyester polyols—including bio-based and PTA-residue-derived variants—will see rapidly rising market penetration and evolve into mainstream products. Enterprises must accelerate R&D investment in green technologies to meet both market needs and regulatory mandates.
- Cost Pressures: Volatility in raw material prices and rising energy costs will persistently challenge polyester polyol producers. Firms must pursue cost reduction via technological innovation and strategic capacity optimization to sustain competitiveness and profitability.

III. Competitive Landscape & Investment Recommendations
- Competitive Landscape: Industry leaders are consolidating market dominance through scale, technology, and brand strength. Smaller enterprises must pursue differentiation strategies and embrace green transformation to carve out sustainable niches.
- Investment Recommendations: Prioritize investment in the green polyester polyol segment—especially companies demonstrating clear cost advantages and robust technological innovation capabilities. Concurrently, exercise caution regarding raw material price volatility and maintain prudent inventory and production cost management.