Chinese Polyol Overview

PUdaily, Shanghai– How has the output and consumption of slab polyols changed in the last decade? How big is the gap between the cost and the price? Is the share of slab polyols in all polyether polyols rising or falling? This article will answer these questions by presenting the production and consumption, as well as cost and price of slab polyols from 2006 to 2016.

In 2006, the output of slab polyols in China was about 375,000 tons, meanwhile the consumption was about 410,000 tons.

In 2016, the output of slab polyols in China was about 640,000 tons, meanwhile the consumption was about 740,000 tons.

From 2006 to 2016, the output of slab polyols increased by about 70%, and the consumption rose by about 80%, with an average annual output and consumption growth of about 6%.

Although the consumption of slab polyols has been increasing, that of all polyether polyols has been rising faster.
After analyzing domestic consumptions of slab polyols and all polyether polyols (including slab polyols, HR polyols, CASE polyols, POP polyether, etc.) over the past 10 years, we found that the share of slab polyols consumption in total polyether polyols consumption has been decreasing. The share was about 42% in 2006, whereas it decreased to 29% in 2016.

The decline is associated with the continued rise in consumption of polyether polyols such as POP, elastomer and HR polyols over the years. Thus, their share in the total consumption has been becoming bigger, while slab polyols’ share is eroded.

Before 2006, the profits of slab polyols manufacturers were good. But from 2006 to 2016, as the problem of tight supply of slab polyols in domestic market was alleviated, the profits decreased significantly from 2006. Manufacturers that imported PO for the production of slab polyols reaped even fewer profits. Product cost and price for manufacturers importing PO are shown as below (unit:RMB/ton).

Between 2006 and 2016, the cost of slab polyols was very close to its price. In some of these years, profits were made, whereas in other years losses were seen, with both profits and losses confined to several hundred yuan. On the whole, the past ten year saw an average loss of about 100 RMB/ton. However, manufacturers producing PO on their own yielded profits far better than their counterparts that imported PO. You can refer to the profits of PO plants to learn about these manufacturers’ profits.

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