2.

3 Asia Market Trend of Polyether Polyol

Asia region is leading the polyether polyols market in global followed by the United
States of America and Western Europe. This can be related to the market for polyurethane
flexible foams which is currently the largest consumer of polyol. Major Asian countries
like India, China, Japan and Malaysia. China dominates the polyether polyol market in
Asia, mainly for the high demand of these chemicals, especially from the construction and
infrastructure industries. The overall demand of polyether polyols has influenced by the
growth observed among end-user industries of this market. Due to the rise in construction
activity and automotive production factors, the demand for flexible foam is increasing. In
2014, China consumed nearly 65% of polyether polyols, in terms of volume (Micromarket
Monitor, 2015)

Depending on the statistics, global polyether polyols capacity in 2017 is

approximately 11.72 million tons. Capacity of polyether polyols in China is around 4.89
million tons which is accounted for 42% of the world (China Polyether Polyol, 2017).

4,870 4,890
4,340 4,510
3,990
kt/year

2013 2014 2015 2016 2017

Capacity

Figure 2.31: China Polyether Polyols Capacity Trend, ktpa (China Polyether
Polyol, 2017)

Based on figure 2.3, China’s polyether polyols capacity was 3,990 kt in 2013, then
it increased to 4,510 kt after two years in 2015 and reaches 4870 kt, account for 43.1% of
the global capacity in 2016. The consumption of polyether polyol in China increases year
by year as the capacity increases. Domestic polyether polyols output reached 2640 kt and
2580 kt for domestic consumption in the year 2016 which can be said that the supply
exceeds the demand (China Polyether Polyol, 2017). But according to the data released by
China’s General Administration of Customs, the import of polyether polyol increased
every two years while its export increased year by year.
 In India, there are two major polyether polyol manufacturers which are Expanded
Polymer Systems Pvt. Ltd. and Petrochemicals Ltd (Micromarket monitor, 2015).

Global PU Production, 2012

12000

10000
Thousand Tonnes

8000

6000

4000

2000

0
Africa Asia Central Europe Middle North South
America East America America
Figure 2.32: Global PU Production in 2012 (Denny, 2014)

According to Outram, coatings, adhesives, sealants and elastomers account for

almost half the economic activity (48%) of the world’s polyurethane industry (Denny,
2014). But the market is heavily distorted towards Asia, he said. The shift in spandex,
synthetic leather production and shoe production from other regions has made Asia the
polyurethanes production race frontrunner. Based on figure 2.32, Asia produced the most
polyurethane compared to the others. Asia produced more than double that at 10m tonnes
while Europe’s polyurethane production was only in the region of 4m tonnes.

Due to rise in demand of application for home textiles, automotive industry and
construction, flexible foam segment has the highest market share. Flexible polyether
polyol is leading all the types of polyether polyols as they have environment friendly
properties and better performance. China consumes more than half in volume of polyether
polyol being the world’s major polyether polyol manufacturer.
Reference

Asia Pacific Polyether Polyols Market By Application (Flexible Foam, Rigid Foam,
Others), By Country (China, Japan, India, South Korea & Rest of Asia Pacific) –
Analysis and Forecast to 2020. (2006).
Retrieved April 03, 2018, from http://www.micromarketmonitor.com/market/asia-
pacific-polyether-polyols-5774408045.html

Bio Polyurethane (PU) Market Report 2018: Global Industry Analysis, Trends, Market
Size and Forecasts 2015-2023 - ResearchAndMarkets.com (2018).
Retrieved from
https://www.businesswire.com/news/home/20180208006249/en/Bio-Polyurethane-
PU-Market-Report-2018-Global

China Polyether Polyol. (2017). China Polyether Polyol Market Research Report. Retrieved
from http://www.pudaily.com/report/y2017/p_polyether.pdf

Denny, J. (2014). Shifting production in CASE market highlighted at conference.

Retrieved from
http://utech-polyurethane.com/information/shifting-production-in-case-market-
highlighted-at-conferencecase/

Micromarket monitor. (2005). Asia Pacific Polyether Polyols Market.

Retrieved from
issuu.com/micromarketmonitor/docs/asia-pacific_polyether_polyols_mark