The global polyol market went through a noticeable change during the second quarter of 2026. Prices moved higher across several important markets as energy costs increased and supply conditions became more difficult. The situation was mainly connected with the conflict in the Middle East and the closure of the Strait of Hormuz, which affected crude oil movement and increased the cost of important feedstocks. For manufacturers and buyers, this created a market where replacement costs became more important when negotiating new purchases.

During the early part of the quarter, buyers faced higher offers from suppliers as producers dealt with increased input costs. Polyols are widely used in polyurethane production, so changes in their cost can quickly affect industries that depend on polyurethane materials. These include insulation, automotive products and other industrial applications. At the same time, higher shipping expenses added another layer of pressure, particularly for markets that depend heavily on imported material.

The Polyol price trend during Q2 2026 was therefore generally positive across major manufacturing and trading regions. The increase was not limited to one market. Asian, Middle Eastern and Indian markets all experienced stronger pricing during the quarter. However, the situation started changing toward June. Buying activity became more cautious, inventories improved in some locations and buyers began waiting before making additional spot purchases. This resulted in some downward movement at the end of the quarter.

Global Polyol Market Movement During Q2 2026

The main factor behind the stronger market during Q2 was the rise in crude oil and feedstock values. Geopolitical disruptions affected energy markets and increased the cost of moving raw materials. For polyol producers, higher feedstock costs can raise manufacturing expenses and make it difficult to maintain earlier selling levels.

The effect was visible in the market during April and May. Buyers who needed material for ongoing production continued purchasing even at higher levels. This helped suppliers maintain stronger offers. Some buyers also focused on securing material early because they were uncertain about how supply and transportation conditions would develop.

The market also faced higher ocean shipping costs. When transportation becomes more expensive, imported material reaches buyers at a higher replacement cost. This is particularly important in countries where local production is not enough to cover domestic consumption.

The Polyol Prices market situation began to soften in June, however. The source indicates that the Polyol Price Index moved downward during the month as spot buying interest weakened. Better inventory availability also reduced the urgency among buyers. Instead of aggressively replenishing stocks, many customers adopted a wait-and-watch approach.

Polyol Market in India

India experienced a strong increase during Q2 2026. The Indian market was influenced by higher import quotations, greater replacement costs and increased shipping expenses. The disruptions in the energy market connected with the Middle East situation also contributed to higher landed costs for imported polyol.

Compared with Q1 2026, the second quarter started from a relatively lower price base. As the quarter progressed, import offers became more expensive and local buyers had to adjust to the changing market conditions. Polyurethane formulators continued purchasing material because they needed to maintain their production schedules.

According to the supplied market information, the Indian polyol market increased by 30.18% in Q2 2026 compared with Q1 2026. This was a substantial quarterly movement and shows how strongly import replacement costs affected the market.

Shipping also played an important role. Higher ocean freight surcharges increased the cost of material arriving at Indian ports. Importers therefore faced a higher overall cost even before considering domestic distribution and handling expenses.

However, the market changed in June. After accumulating material at ports, local importers became more careful with new purchases. Some buyers paused fresh spot commitments to use existing inventories before returning to the market. As a result, prices in India decreased by 8.94% compared with the previous month.

This June correction does not necessarily mean that the entire quarterly increase disappeared. Instead, it shows how quickly market sentiment can change when inventory levels improve and buyers become less aggressive.

Polyol Market in China

China also recorded a major increase during Q2 2026. The market was supported by higher upstream energy benchmarks and stronger production costs. Polyol producers faced increasing expenses, particularly because propylene oxide became more expensive.

The Chinese market entered Q2 from a comparatively lower level after the first quarter. During the second quarter, the combination of higher energy costs and stronger demand from polyurethane-related applications pushed prices higher.

The source indicates that polyol values in China increased by 46.36% in Q2 2026 compared with Q1 2026. This was higher than the quarterly increase reported for India.

Demand from downstream sectors also provided support, especially during the early part of the quarter. Automotive and insulation applications continued consuming material, allowing suppliers to maintain stronger market positions. When demand remains active while production costs are increasing, sellers generally have more confidence when revising offers.

The situation became softer in June. Overseas customers slowed their purchasing activity as they wanted to understand where the market was heading before placing additional orders. This reduction in fresh export demand put pressure on quotations.

As a result, Chinese polyol values decreased by 10.07% in June compared with the previous month. The correction was connected with slower overseas buying and softer export quotations rather than a complete reversal of the factors that had pushed prices higher earlier in the quarter.

What Buyers Experienced During the Quarter

From a buyer's point of view, Q2 2026 was difficult because market conditions changed quickly. During the first part of the quarter, securing material was more important than waiting for lower offers. Rising feedstock and transportation costs created uncertainty, and buyers had to consider the possibility of paying more later.

By June, the situation was different. Improved inventory buffers allowed buyers to become more selective. Instead of immediately accepting new offers, some customers chose to consume material already in storage. This reduced spot purchasing pressure.

Such behaviour is common in commodity markets. When prices rise quickly, buyers often purchase more actively because they are concerned about further increases. Once inventories become comfortable, they may reduce purchases and wait for clearer market signals. This can create a correction even when the broader quarterly picture remains positive.

Factors to Watch Ahead

Looking beyond Q2, several factors will remain important for the polyol market. Energy prices will continue to influence production costs, while feedstock movements will determine how much cost pressure producers face. Freight rates and shipping conditions will also remain relevant for import-dependent markets.

Demand from polyurethane applications will be another important factor. Automotive, insulation and other industrial sectors can influence purchasing requirements. If downstream demand remains healthy, suppliers may find it easier to maintain firm offers. If customers reduce production or continue working through inventories, buying activity could remain subdued.

Inventory levels will also matter. The June correction in both India and China shows that market direction can change when buyers have sufficient stocks. Future purchasing decisions may therefore depend not only on current prices but also on how much material is available in warehouses and at ports.

Conclusion

The polyol market during Q2 2026 was marked by a strong rise followed by a noticeable correction toward the end of the quarter. Higher crude oil and feedstock costs, Middle East disruptions and increased shipping expenses created strong upward pressure during the early months. India and China both recorded significant quarterly increases, with China showing the larger movement.

The market became calmer in June as buyers reduced fresh spot purchases and inventory positions improved. India recorded a monthly decline of 8.94%, while China saw a 10.07% monthly decrease. These movements suggest that buyers became more cautious after the strong increases seen earlier in the quarter.

Overall, the quarter demonstrated how closely polyol markets can respond to energy costs, logistics, feedstock availability and purchasing behaviour. The next phase will depend largely on whether feedstock costs remain elevated, how shipping conditions develop and whether downstream industries continue purchasing at healthy levels.

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