polyalphaolefin Pricing Assessment

Markets Covered:

United States

Belgium

India

China

Mexico

Brazil

France

Turkey

Polyalphaolefin Price Trend, Analysis and Forecast

As of July 2024, Polyalphaolefin (PAO) prices in the USA stabilized at USD 2,393 per metric ton, showing a slight increase of 0.08% from June’s price of USD 2,391. In comparison, prices averaged USD 2,518 per metric ton in Q1 but declined to USD 2,394 in Q2, reflecting a decrease of 4.92%.

These trends were influenced by significant supply challenges, including maintenance shutdowns at critical production facilities and geopolitical tensions affecting feedstock availability. Demand for PAOs remained robust, particularly in the automotive and construction sectors, which were essential for producing high-performance lubricants and polyurethane products.

Looking ahead to Q3 2024, the market will likely face ongoing price pressure despite stable demand. Supply chain constraints and rising feedstock costs are expected to potentially limit availability. The increasing focus on sustainable materials is anticipated to enhance PAO’s market position, ensuring sustained demand.

Anticipated production capacity expansions in key regions, including the USA, are expected to help stabilize prices in Q4 2024 and beyond. However, the market is likely to remain volatile through 2030 due to geopolitical developments and evolving demand dynamics. Stakeholders will need to effectively navigate these complexities to manage pricing strategies and investments.

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is your trusted resource for tracking global polyalphaolefin price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the polyalphaolefin market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence polyalphaolefin prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely polyalphaolefin market data.

Track 's polyalphaolefin price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in polyalphaolefin prices

Israel-Hamas Conflict (2023-Present): The ongoing conflict has disrupted trade routes and supply chains in the Middle East, impacting the availability and costs of raw materials essential for Polyalphaolefin production globally.

Russia-Ukraine Conflict (2022-Present): This ongoing war has severely disrupted production and supply chains across Europe, particularly affecting countries like Belgium and France, leading to increased costs and heightened global price volatility for Polyalphaolefin.

Global Energy Price Volatility (2021-2022): Fluctuations in crude oil and natural gas prices, particularly in the U.S. and Europe, directly affected the production costs of Polyalphaolefin, resulting in periodic price adjustments.

Texas Winter Storm (2021): Severe winter weather in the U.S. caused production halts at key facilities, impacting the supply of Polyalphaolefin. This event led to temporary spikes in prices due to supply constraints.

COVID-19 Pandemic (2020): The pandemic initially resulted in a sharp decline in demand; however, as economies reopened, demand surged in sectors such as automotive and construction, significantly impacting Polyalphaolefin prices.

Environmental Regulations and Protests (2019-Present): Stricter environmental regulations in various countries, including India and Brazil, along with protests against industrial pollution, have affected production capabilities and increased compliance costs, contributing to price increases for Polyalphaolefin.

Geopolitical Tensions and Trade Wars (2018-2019): Trade tensions, particularly between the U.S. and China, introduced uncertainty in global supply chains, affecting the import and export dynamics for Polyalphaolefin and contributing to price instability.

China’s Economic Slowdown (2015-2019): Slowing growth in China, a major consumer and producer of Polyalphaolefin, led to decreased demand and excess supply, which contributed to significant price fluctuations during this period.

These events underscore the Polyalphaolefin market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Methodology and Specifications

polyalphaolefin Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: aggregates real-time pricing data from various sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures our assessments reflect the most current market conditions for Polyalphaolefin.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users across major Polyalphaolefin production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire Polyalphaolefin supply chain, from raw material availability (e.g., Linear Alpha olefin) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: continuously monitors global geopolitical developments, such as conflicts or trade disputes, that can significantly impact Polyalphaolefin prices. Our analysis considers potential disruptions to supply chains and their immediate and long-term effects on pricing.

Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on Polyalphaolefin production facilities, particularly in vulnerable regions. These events are factored into our price forecasts and supply outlooks.

Economic Shifts: evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., automotive, construction), to predict shifts in Polyalphaolefin demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global Polyalphaolefin production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to accurately assess current supply availability.

Future Capacity Projections: Our research includes detailed forecasts of upcoming Polyalphaolefin production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps predict future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: provides in-depth analysis of demand trends across key sectors, including automotive and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global Polyalphaolefin pricing, including shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: utilizes advanced econometric models to forecast Polyalphaolefin prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions, including best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that delivers the most accurate, timely, and actionable Polyalphaolefin pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

CAS No

68037-01-4

HS Code

39029000

Molecular Formula

polyalphaolefin

Polyalphaolefin

Packaging Type

Iso tanks, Drums (India)

Grades Covered

Industrial Grade (8 cSt)

Incoterms Used

FOB Houston, FOB Antwerp, CIF Nhava Sheva (USA), Ex-India, CIF Shanghai (USA), CIF Manzanillo (USA), FD France (Belgium), CIF Mersin (Belgium), CIF Santos (Belgium)

Synonym

PAO

Quotation Terms:

25-28 MT, 10-15 MT (India)

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Property	Values	Unit
Appearance	Clear and Bright
Colour	<0.05
Viscosity @ 100℃	8	cSt
Water Content	<50	ppm
Specific Gravity@15.6℃	0.83
Total Acid Number	<0.05	Mg KOH/g

Applications

Polyalphaolefin (PAO) is a versatile compound with a wide range of applications across various industries. It serves as a key raw material in the production of polyurethanes, which are essential for manufacturing insulation materials, flexible foams, and automotive components. Its unique properties make PAO invaluable in personal care products, including cosmetics and skin care formulations, where it enhances texture and performance. In the construction industry, PAO is incorporated into adhesives, sealants, and coatings, improving flexibility and durability. Its use in construction materials enhances product longevity, making them more resilient to environmental factors. The automotive sector leverages PAO in lightweight composite materials, contributing to improved fuel efficiency and reduced emissions, thereby supporting the industry’s sustainability goals. Additionally, PAO plays a crucial role in the production of surfactants for water treatment processes, aiding in the formulation of effective flocculants that remove impurities. The textile industry benefits from PAO in finishes that enhance fabric performance and appearance. With the growing demand for sustainable products, PAO is increasingly utilized in developing bio-based materials and environmentally friendly alternatives, underscoring its importance in both industrial and consumer markets.

Disclaimer

Polyalphaolefin price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for polyalphaolefin. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors affect the pricing of Polyalphaolefins (PAOs)? +

The pricing of Polyalphaolefins (PAOs) is influenced by several key factors, including fluctuations in crude oil prices, feedstock availability, and production costs. Additionally, market demand from sectors such as automotive lubricants and industrial applications can lead to price volatility. Understanding these factors is crucial for procurement heads to effectively manage budgets and secure competitive pricing for PAOs.

How do market trends impact the availability and pricing of PAOs? +

Market trends significantly influence the availability and pricing of PAOs through changes in demand, production capacity, and technological advancements. For example, increased demand for high-performance lubricants can drive up prices and affect supply. Procurement teams should continuously monitor these trends to ensure a reliable supply chain and anticipate potential disruptions that could impact sourcing strategies.

What sustainability considerations should procurement heads keep in mind when sourcing PAOs? +

Sustainability is becoming increasingly important in the procurement of PAOs. When sourcing, procurement heads should assess suppliers based on their environmental practices, adherence to safety regulations, and the use of renewable feedstocks. Prioritizing suppliers with sustainable production methods not only aligns with corporate responsibility goals but also helps mitigate risks associated with changing regulations and consumer preferences for eco-friendly products.