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Update on the polyurethane market situation

Products

The current situation

As you might already know from the news, the gas supply situation remains unstable, and gas has a major impact on the polyurethane market situation. Russia only delivers a fraction of the agreed gas amount via Nord Stream 1 and other channels. The danger that the amount will decrease even further is omnipresent.

On this basis, not even experts can seriously tell if the demand for gas in Germany and Europe can be satisfied during the upcoming winter. The worst case would be rationing by the government according to the “Gas Emergency Plan” which would especially impact the industry.

The good news

During these uncertain times, our main supplier brought us an unexpected glimpse of hope: They are very probably able to acquire enough gas to produce polyurethane to the usual extent. Thus, we are positive that we will be able to supply all our customer’s orders.

The bad news

Moreover, our main supplier informed us that the prices for polyurethane will very likely continue to rise. That in turn, unfortunately, has us a little less optimistic concerning the price situation. But probably all stakeholders of the supply chain are in the same boat in this case.

In the end, we at PAPUREX are glad that our production ability is not threatened, at least for the short term. Nevertheless, there are still rough times ahead for the industry.

We wish all our business partners much success in these difficult times and are thankful for their trust.