2018 Polyether Market Overview

Supply and Demand

1. In 2018, China’s polyether production increased by 3.2% year-on-year.

2. The domestic consumption of polyether increased by 3.8%, down 5.1 percentage points from 2017.

Table 1: Overview of supply and demand of polyether market in 2018

Figure 1: Apparent consumption of polyether polyols in China from 2014 to 2018

Price & Profit

1. Price: The lowest price of ordinary soft foam polyether in East China in 2018 is 11,200 yuan/ton, and the highest price is 14,800 yuan / ton, the average price is 12682 yuan / ton, a year-on-year increase of 10.7%.

2. Price difference: soft foam polyether and POThe minimum price is only 100 yuan/ton, and the profit of soft foam polyether is negative in the same period.

3. Profit: In 2018, polyether remained profitable overall, but the profit was restricted by upstream raw materials. The average annual gross profit of ordinary soft foam was about 565 yuan/ton, an increase of 110 yuan/ton compared with 2017.

Figure 2: Various gatherings in China in 2018 Ether polyol price trend

Figure 3: 2018 Chinese OrdinarySoft Foam PolyetherPolyol Gross Profit Trend

Import and Export

1. In 2018, polyether imports involved 32 countries, and imports from the top five countries accounted for nearly 90% of the total.

2. The export involves 136 countries, and the export to the top 20 countries accounts for 79% of the total.

3. Due to the friction between China and the United States, the trade activities with Iran have been very frequent within a certain period of time, and the volume of polyether exported to Iran has increased considerably year-on-year.

Figure 4: Import of polyether polyols in China in 2018 ( Left) Exit (right)

Figure 1: Apparent consumption of polyether polyols in China from 2014 to 2018

Price & Profit

1. Price: The lowest price of ordinary soft foam polyether in East China in 2018 is 11,200 yuan/ton, and the highest price is 14,800 yuan / ton, the average price is 12682 yuan / ton, a year-on-year increase of 10.7%.

2. Price difference: soft foam polyether and POThe minimum price is only 100 yuan/ton, and the profit of soft foam polyether is negative in the same period.

3. Profit: In 2018, polyether remained profitable overall, but the profit was restricted by upstream raw materials. The average annual gross profit of ordinary soft foam was about 565 yuan/ton, an increase of 110 yuan/ton compared with 2017.

Figure 2: Various gatherings in China in 2018 Ether polyol price trend

Figure 3: 2018 Chinese OrdinarySoft Foam PolyetherPolyol Gross Profit Trend

Import and Export

1. In 2018, polyether imports involved 32 countries, and imports from the top five countries accounted for nearly 90% of the total.

2. The export involves 136 countries, and the export to the top 20 countries accounts for 79% of the total.

3. Due to the friction between China and the United States, the trade activities with Iran have been very frequent within a certain period of time, and the volume of polyether exported to Iran has increased considerably year-on-year.

Figure 4: Import of polyether polyols in China in 2018 ( Left) Exit (right)