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Polyalphaolefin Price Trend and Forecast

UNSPC: 15121500

polyalphaolefin Price Trends by Country

usUnited States
beBelgium
inIndia
cnChina
mxMexico
brBrazil
frFrance
trTurkey

polyalphaolefin Pricing Trends in India: 

  • Northern India polyalphaolefin market price trend
  • Southern India polyalphaolefin market price trend
  • Central India polyalphaolefin market price trend

Global polyalphaolefin Price Trend, Analysis and Forecast​

According to PriceWatch, global Polyalphaolefin (PAO) prices exhibited visible weakness in Q2 2025, continuing the downward price trend seen since late 2024. PAO-8 CST prices on an FOB Houston basis averaged USD 2,392 per metric ton, dropping 4.66% from the previous quarter, while FOB Antwerp PAO-6 CST stood at USD 2,186 per metric ton, marking a 7.49% decrease.

This softening was primarily due to consistent but tepid demand across the automotive and industrial lubricants sectors, paired with restrained downstream activity in major economies. The price trend indicated that global market participants remained cautious, as steady supply and moderated feedstock costs helped limit volatility.

Reviewing the Q2 2025 price trend, prices maintained a relatively narrow range, signalling stable fundamentals despite weak growth signals from end-user industries. Exporters focused on adapting logistics and optimizing inventory to prevent oversupply in a market increasingly characterized by price-driven competition and inventory discipline. Overall, the global PAO market experienced a period of price consolidation as the sector awaited stronger signals of demand recovery. 

Polyalphaolefin Price Trend Analysis: Q2 2025

According to PriceWatch, global Polyalphaolefin (PAO) prices exhibited visible weakness in Q2 2025, continuing the downward price trend seen since late 2024. PAO-8 CST prices on an FOB Houston basis averaged USD 2,392 per metric ton, dropping 4.66% from the previous quarter, while FOB Antwerp PAO-6 CST stood at USD 2,186 per metric ton, marking a 7.49% decrease. This softening was primarily due to consistent but tepid demand across the automotive and industrial lubricants sectors, paired with restrained downstream activity in major economies.

The price trend indicated that global market participants remained cautious, as steady supply and moderated feedstock costs helped limit volatility. Reviewing the Q2 2025 price trend, prices maintained a relatively narrow range, signalling stable fundamentals despite weak growth signals from end-user industries.

Exporters focused on adapting logistics and optimizing inventory to prevent oversupply in a market increasingly characterized by price-driven competition and inventory discipline. Overall, the global PAO market experienced a period of price consolidation as the sector awaited stronger signals of demand recovery. 

Polyalphaolefin Price Trend Analysis: Q1 2025

In Q1 2025, US Polyalphaolefin Prices increased by 1.91%, rising to $2,511/MT, signalling a modest recovery after the price decline in the previous quarters. The slight uptick in price reflects a small market rebound driven by a potential rise in demand.

Belgian PAO Prices decreased by 1.58%, dropping to $2,365/MT, indicating a slight correction following the steady price increases in the previous quarter. The market showed signs of stabilizing with minimal changes in demand. 

Polyalphaolefin Price Trend Analysis: Q4 2024

In Q4 2024, US Polyalphaolefin Prices saw a decrease of 5.08%, falling to $2,464/MT, reflecting a continuation of the downward trend due to sluggish demand and potential oversupply concerns. The market remained under pressure as it moved into the end of the year. Belgian PAO Prices rose by 2.26%, reaching $2,403/MT, driven by continued stability in demand and market recovery, coupled with tighter supply conditions towards the end of the year. 

Polyalphaolefin Price Trend Analysis: Q3 2024

In Q3 2024, US PAO prices decreased by 3.28%, reaching $2,596/MT. The decrease was driven by continued weaker demand and ongoing softness in the market, as customers hesitated in making large purchases. Belgian PAO Prices increased by 1.03%, reaching $2,350/MT, as market conditions remained stable with moderate demand.  

Polyalphaolefin Price Trend Analysis: Q2 2024

In Q2 2024, US Polyalphaolefin Prices slightly fell by 0.45%, reaching $2,684/MT, reflecting minimal changes in market conditions as demand remained relatively stable, and production levels continued adjusting to lower consumption rates.

Belgian PAO Prices rose by 5.87%, reaching $2,326/MT, reflecting a recovery in demand and market conditions. This increase was driven by stronger purchasing activity and a rebound from the low levels seen in Q1 2024. 

Polyalphaolefin Price Trend Analysis: Q1 2024

In Q1 2024, US Polyalphaolefin Prices decreased by 16.06%, dropping to $2,696/MT. This sharp decline was driven by reduced demand and a softer market, following a higher price trend in Q4 2023. Belgian PAO Prices decreased by 13.13%, falling to $2,197/MT, driven by weaker demand and market uncertainty. The sharp drop in prices followed the higher prices observed in Q4 2023. 

India polyalphaolefin Price Trend, Analysis and Forecast

Polyalphaolefin Price Trend Analysis: Q1 2025

Q1 2025: Prices rose by 1.99%, reaching $2,615/MT, signaling a modest recovery following the sharp decline in the previous quarter. The slight uptick indicates that market demand is beginning to stabilize after the correction, with some signs of resilience in the market moving into the new year. India Domestic Market Price for PAO inclined to $ 3367 /MT by 1.05%. 

Polyalphaolefin Price Trend Analysis: Q2 2025

According to PriceWatch, Polyalphaolefin (PAO-8 CST) prices on a CIF Nhava Sheva, India basis averaged USD 2,491 per metric ton in Q2 2025, showing a decrease of 4.67% over Q1, while Ex-Mumbai prices averaged USD 3,392 per metric ton, with a marginal 0.74% uptick. The price trend for imported PAO in India reflected softness, as Indian buyers leveraged lower international prices for competitive procurement, tracking shifts in the global price trend.

The Indian Q2 2025 price trend for CIF cargoes illustrated a gradual slide through April and May, stabilizing in June as both imports and local demand improved. In contrast, the Ex-Mumbai price trend held firm due to higher domestic production costs and resilient end-user demand from the automotive and industrial segments.

The overall Indian PAO market remained driven by supply chain adjustments and localized consumption patterns, with distributors carefully balancing offtake and inventory to shield profit margins amid shifting global dynamics. 

Polyalphaolefin Price Trend Analysis: Q1 2024

Q1 2024: Prices dropped by 15.35%, falling to $2,752/MT, after the sharp surge in Q4 2023. This significant price correction reflected a natural market adjustment after an unsustainable spike. Weaker demand in early 2024 and softer overall market conditions contributed to the price decline, as buyers adopted a more cautious approach. India Domestic Market Price for PAO declined to $3576/MT by -3.40%. 

Polyalphaolefin Price Trend Analysis: Q2 2024

Q2 2024: Prices increased by 0.40%, rising to $2,763/MT, signaling a slight improvement in market conditions. This modest increase suggests that demand was beginning to stabilize, but there was still a lack of strong upward momentum. The market showed some signs of recovery, but it remained cautious with limited volume increases. India Domestic Market Price for PAO declined to $3439 /MT by -3.83%. 

Polyalphaolefin Price Trend Analysis: Q3 2024

Q3 2024: Prices decreased by 2.61%, reaching $2,691/MT, as demand remained subdued. While there was some attempt at market recovery, the pace was slow, and the market showed signs of hesitancy, with less aggressive purchasing behavior from buyers compared to earlier periods. India Domestic Market Price for PAO were stabilized to $3441/MT by 0.06%. 

Polyalphaolefin Price Trend Analysis: Q4 2024

Q4 2024: Prices fell by 4.72%, dropping to $2,564/MT, as market conditions remained soft. The decline was likely due to continued weakened demand and potential oversupply in the market during the year-end period. The decrease also reflects the broader trend of softer economic conditions affecting market sentiment. India Domestic Market Price for PAO further declined to $ 3332 /MT by -3.17%. 

Global polyalphaolefin Supply Chain

Upstream
Downstream
  • Lubricants Industry
  • Automotive Industry
  • Aerospace Industry
  • Industrial Machinery
  • Cosmetics and Personal Care
  • Electrical and Electronic Equipment
Major supplying countries
  •  USA
  •  Belgium
Major importing countries
  • India
  • Turkey
  • China
  • Brazil
  •  France
  •  Mexico

India polyalphaolefin Supply Chain

Upstream
  • Alpha-Olefins
  • Ethylene
Downstream
  • Lubricants Industry
  • Automotive Industry
  • Aerospace Industry
  • Industrial Machinery
  • Cosmetics and Personal Care
  • Electrical and Electronic Equipment
Major supplying countries
  •  USA
  •  Belgium
Major importing countries
  • India
  • Turkey
  • China
  • Brazil
  •  France
  •  Mexico

Technical Specifications of Polyalphaolefin Price Trends

Molecular Weight[g/mol]

CAS No

68037-01-4 500-183-1

HS Code

39029000

Molecular Formula

polyalphaolefin

Polyalphaolefin (PAO) is a high-performance synthetic lubricant base oil known for its excellent thermal stability, low volatility, and superior oxidative resistance. Ideal for automotive, industrial, and marine applications, PAO offers enhanced wear protection, reduced friction, and improved fuel efficiency. Its high viscosity index ensures consistent performance across a wide range of temperatures. PAO is compatible with a variety of additives, making it versatile for creating premium lubricants and greases. Trusted by industries worldwide, Polyalphaolefin helps extend equipment life and optimize operational efficiency.

Packaging Type

Iso Tanks, Drums (India)

Polyalphaolefin Grades Covered

Industrial Grade (8 cSt, 6 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

PriceWatch Quotation Terms:

20-25 MT, 10 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   
Color  0   
Viscosity @ 100℃  7.8  cSt 
Specific Gravity@15.6℃  0.8326   
Total Acid Number  <0.03  Mg KOH/g 

 

Property  Values  Unit 
Appearance  Clear and Bright   
Color  0   
Viscosity @ 100℃  5.86  cSt 
Specific Gravity@15.6℃  0.8280   
Total Acid Number  <0.03  Mg KOH/g 

Polyalphaolefin Industrial 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. 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. 

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. 
  • 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.
  • 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. 
  • 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. 

Why PriceWatch?

PriceWatch 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, PriceWatch keeps you fully informed of market dynamics.

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

Track PriceWatch'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.

Data Collection and Sources​

  • Real-Time Market Data: PriceWatch 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: PriceWatch 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: PriceWatch 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: PriceWatch 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: PriceWatch 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: PriceWatch 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 PriceWatch delivers the most accurate, timely, and actionable Polyalphaolefin pricing assessments, helping our clients stay ahead of market trends and make informed business decisions. 

Molecular Weight[g/mol]

CAS No

68037-01-4 500-183-1

HS Code

39029000

Molecular Formula

polyalphaolefin

Polyalphaolefin (PAO) is a high-performance synthetic lubricant base oil known for its excellent thermal stability, low volatility, and superior oxidative resistance. Ideal for automotive, industrial, and marine applications, PAO offers enhanced wear protection, reduced friction, and improved fuel efficiency. Its high viscosity index ensures consistent performance across a wide range of temperatures. PAO is compatible with a variety of additives, making it versatile for creating premium lubricants and greases. Trusted by industries worldwide, Polyalphaolefin helps extend equipment life and optimize operational efficiency.

Packaging Type

Iso Tanks, Drums (India)

Grades Covered

Industrial Grade (8 cSt, 6 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

PriceWatch Quotation Terms:

20-25 MT, 10 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   
Color  0   
Viscosity @ 100℃  7.8  cSt 
Specific Gravity@15.6℃  0.8326   
Total Acid Number  <0.03  Mg KOH/g 

 

Property  Values  Unit 
Appearance  Clear and Bright   
Color  0   
Viscosity @ 100℃  5.86  cSt 
Specific Gravity@15.6℃  0.8280   
Total Acid Number  <0.03  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. 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. 

Polyalphaolefin Market Price Trend provided by PriceWatch 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. PriceWatch 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.

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.

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.

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.

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