1. PU Foam Blowing Agents: Low-GWP Transition Accelerates
According to industry research, global PU foam blowing agent sales reached approximately $3 billion in 2025 and are expected to grow to $3.1 billion in 2026, reaching $4.3 billion by 2032. Core drivers include sustained demand from cold chain logistics, building insulation, and automotive lightweighting, coupled with stringent environmental regulations on the Global Warming Potential (GWP) of blowing agents.
Global Market Structure
| Region | Position | Key Trend |
|---|---|---|
| Asia-Pacific | Largest market (~35%) | Cold chain, construction, automotive driving growth |
| North America | Second largest | Deep technology transition, HFO substitution accelerating |
| Europe | Third largest | F-gas regulation driving blowing agent replacement |
Technology Transition Dynamics
- Low-GWP substitution accelerates:European F-gas regulations and US EPA rules are forcing the phase-out of high-GWP blowing agents. Third-generation HFOs and water-based blowing agents are rapidly expanding capacity.
- Fastest growth in Asia-Pacific:Cold chain logistics and building insulation demand in China, India, and Southeast Asia continue to expand.
- Supply-side consolidation intensifies:Multiple chemical giants are increasing investment in low-GWP blowing agent capacity, with new production expected to come online during 2024-2026.
2. China Polyethylene: Seasonal Weakness Persists
China's PE market experienced a broad price decline in May 2026. Crude oil cost support for PE has weakened, while domestic production increased and imports remained constrained, resulting in slightly higher overall supply. Downstream industries entered the traditional off-season with low procurement enthusiasm.
Key Factors for PE Market Trends
- Weakening cost support:Crude oil prices are expected to maintain a moderate trend since June, further eroding PE cost support and pushing the price center lower.
- Supply increase expected:Multiple domestic ethylene units are restarting after scheduled maintenance, which will continue to release domestic supply.
- Insufficient off-season demand:Downstream agriculture film and packaging industries are in the traditional slow season, with procurement primarily on a just-in-time basis.
3. Market Outlook
The PU foam blowing agent market shows strong medium-to-long-term growth driven by the dual forces of low-GWP transition and Asia-Pacific demand expansion. Focus on HFO and water-based blowing agent capacity deployment. China's PE market is expected to maintain its weak trend in the short term. Downstream enterprises are advised to control inventory levels and restock at low positions.
