If you buy or sell industrial solvents, you almost certainly noticed something significant happening this spring. The Tetrahydrofuran (THF) Price Trend moved sharply higher across nearly every major global market in the second quarter of 2026, and the reason traces back to one central event: escalating conflict between Iran and the USA, and the closure of the Strait of Hormuz that followed. For anyone tracking Tetrahydrofuran (THF) Prices across Asia, the Middle East, and North Africa, Q2 2026 turned into a quarter defined by disrupted shipping, rising energy costs, and prices that climbed almost everywhere at once, before cooling off a little as June rolled around.
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The Root Cause Behind the Whole Quarter
It is worth starting with the big picture, because nearly every regional story in this quarter traces back to the same event. When conflict flared between Iran and the USA and the Strait of Hormuz effectively closed, it did not just affect oil markets in isolation — it sent shockwaves through global energy flows more broadly. Crude oil prices jumped, and that increase worked its way through the entire petrochemical supply chain. Feedstock costs rose, production expenses climbed, and freight and logistics costs went up almost everywhere, since so much global shipping depends on routes that pass through or near that stretch of water.
Against that backdrop, demand for tetrahydrofuran held remarkably steady. Pharmaceutical manufacturers, chemical processors, polymer producers, coatings makers, and various industrial applications all kept buying at a fairly consistent pace throughout the quarter. That combination — a genuine supply shock on one side and unwavering demand on the other — is exactly what pushed prices upward across so many markets simultaneously. The Tetrahydrofuran (THF) Price Chart for the quarter reflects this clearly, showing firm, broad-based growth through April and May. The Tetrahydrofuran (THF) Price Index told the same story, staying strong for most of the quarter before easing modestly in June as buyers grew more cautious and started adjusting their inventories downward after the run-up.
China: The Market Setting the Regional Tone
China's export market, priced FOB Shanghai, saw prices rise about 16% for the quarter. As with almost every market covered here, the increase traces back to the Iran–USA conflict and the closure of the Strait of Hormuz, which pushed crude oil prices higher and raised feedstock, energy, production, and transportation costs all at once. Demand from pharmaceutical, polymer, coating, and chemical industries stayed stable, giving producers the confidence to adjust their export offers upward to offset rising operating costs.
Buyers kept their procurement activity fairly regular through the quarter, watching supply chain conditions and shifting freight rates closely rather than pulling back entirely. By June, though, the market cooled — prices fell about 4% from May, as buyers made inventory adjustments, reduced spot purchases, and generally turned more cautious after the strong gains recorded earlier in the quarter.
Saudi Arabia: Regional Shipping Disruption Hits Home
Saudi Arabia's export market, priced FOB Jeddah, rose about 14% for the quarter. Given the country's proximity to the source of the disruption, it is not surprising that the closure of the Strait of Hormuz directly affected regional shipping activity, pushing up crude oil, freight, insurance, and import costs all together. Steady demand from pharmaceutical, chemical, coating, and industrial applications helped keep the market firm despite the added cost pressure.
Importers adjusted their offers to reflect higher transportation and supplier expenses, and buyers kept procurement steady to make sure they had enough inventory on hand for ongoing operations. June brought some relief, with prices easing about 3% from May as buyers grew more cautious, made inventory corrections, and pulled back on spot purchasing following the earlier increase.
Taiwan: A More Modest Rise
Taiwan's export market, priced FOB Kaohsiung, saw a comparatively smaller increase of about 7% for the quarter. The same underlying forces were at work — disrupted global shipping routes and higher crude oil, energy, and logistics costs tied to the Strait of Hormuz situation — but the impact here was somewhat gentler than in other regions. Stable demand from pharmaceutical, chemical, coating, and specialty polymer industries kept the market active throughout.
Suppliers held firm on their export offers given the higher production and transportation costs they were facing, while buyers took a more cautious approach to procurement, securing what they needed for regular operations without overcommitting. In June, prices eased about 3% from May, as inventory balancing and slower spot demand brought purchasing activity down somewhat.
Thailand: Import Costs Track China Closely
Thailand's import market, priced CIF Bangkok and sourced from China, rose about 15% for the quarter. Since Thailand imports its material from China, the same drivers applied — rising crude oil prices tied to the Strait of Hormuz closure, along with higher freight, production, and import expenses. Steady demand from pharmaceutical, chemical, coating, and industrial manufacturing sectors supported the upward move.
Importers adjusted their pricing to reflect higher supplier and transportation costs, while buyers kept procurement fairly regular, watching global supply conditions closely as they shifted through the quarter. By June, prices fell about 4% from May, as inventory balancing, cautious purchasing, and weaker spot activity took hold after the strong earlier gains.
UAE: The Sharpest Increase in the Region
The UAE's import market, priced CIF Jebel Ali and sourced from Taiwan, recorded the largest quarterly increase among all the markets covered here, rising about 20%. Being situated close to the center of the disruption, the UAE market felt the impact of the Strait of Hormuz closure especially strongly, with local transport routes interrupted and crude oil, freight, insurance, and import costs all rising sharply as a result.
Steady demand from pharmaceutical, chemical, coating, and industrial sectors reinforced the upward trend, and importers held firm on pricing given how elevated logistics and supplier costs had become. Buyers moved to secure material proactively, wanting to avoid potential supply shortages. In June, prices eased about 2% from May, as inventory adjustments and more careful purchasing reduced spot market activity somewhat.
South Korea: Broad-Based Demand Keeps the Market Firm
South Korea's import market, priced CIF Busan and sourced from China, rose about 15% for the quarter. As with the other markets, the conflict between Iran and the USA and the resulting closure of the Strait of Hormuz drove up crude oil prices and increased energy, freight, production, and logistics expenses across the board.
What stands out in South Korea is the breadth of demand supporting the market — beyond the usual pharmaceutical, polymer, coating, and chemical applications, the electronics sector also contributed meaningfully to consumption here. Importers adjusted prices to reflect higher supplier and shipping costs, while buyers maintained consistent sourcing to keep industrial operations running smoothly. June brought a decline of about 4% from May, as adequate inventories, cautious buying, and reduced spot purchases eased the pressure that had built up earlier in the quarter.
India: A Strong Quarterly Gain Amid Supply Uncertainty
India's import market, priced CIF Nhava Sheva and sourced from China, matched the UAE with a 20% quarterly increase, one of the strongest moves recorded in this cycle. Rising crude oil prices tied to the Strait of Hormuz closure pushed up production, freight, insurance, and import costs, and robust demand from pharmaceutical, chemical, adhesive, coating, and polymer sectors added further support to the upward trend.
Importers adjusted their offers as supplier and logistics expenses climbed, and buyers responded by ramping up purchasing activity to make sure they had reliable access to material given how unpredictable the broader supply chain had become. In June, prices eased about 3% from May, as inventory adjustments, more careful buying, and reduced spot demand followed the sharp quarterly rise.
Egypt: Steady Gains Tied to Shipping Disruption
Egypt's import market, priced CIF Alexandria and sourced from China, rose about 14% for the quarter. The conflict between Iran and the USA, together with the closure of the Strait of Hormuz, disrupted international shipping routes affecting Egypt as well, pushing up crude oil, freight, insurance, and import expenses. Consistent demand from pharmaceutical, chemical, coating, and industrial sectors provided steady support throughout the period.
Importers held firm on pricing to offset higher transportation and supplier costs, and buyers kept their purchasing activity consistent despite the elevated cost environment, prioritizing production continuity over cost savings. By June, prices had fallen about 4% from May, as careful purchasing, inventory adjustments, and reduced spot demand brought the market back down somewhat.
Vietnam: A Milder Move, Sourced From Taiwan
Vietnam's import market, priced CIF Haiphong and sourced from Taiwan, rose about 7% for the quarter, matching Taiwan's own more modest export increase. The same underlying disruption applied — the Iran–USA conflict and Strait of Hormuz shutdown affecting shipping routes and pushing up crude oil, freight, and import costs — though the overall impact here was comparatively gentle. Consistent demand from pharmaceutical, coating, chemical, and polymer processing sectors kept the market steady through the quarter.
Suppliers held firm on their offers to offset rising transportation and operational costs, while buyers took a careful approach to purchasing, making sure they had adequate stock for manufacturing needs without overextending. In June, prices eased about 3% from May, as balanced supply, inventory adjustments, and reduced spot purchasing followed the earlier price increase.
What the Pattern Across Nine Markets Tells Us
Looking at all nine regions together, the picture is remarkably unified. Every single market saw a quarterly increase, ranging from Taiwan and Vietnam's more modest 7% gains up to the UAE and India's sharper 20% increases, and in every case the underlying trigger was the same: the Iran–USA conflict and the resulting closure of the Strait of Hormuz. That single geopolitical event rippled outward through crude oil prices, feedstock costs, freight rates, and insurance expenses, touching markets as far apart as East Asia, South Asia, the Middle East, and North Africa.
The size of each region's increase seems to correlate loosely with proximity to the disruption and reliance on imports — markets like the UAE and India, more exposed to shipping route disruptions and import dependency, saw sharper gains, while export hubs like Taiwan, with somewhat more insulated supply positions, saw comparatively gentler moves. The other consistent theme is the June pullback. Every market covered here saw prices ease in June, generally somewhere between 2% and 4%, as buyers grew more cautious, adjusted their inventories, and pulled back on spot purchasing after the sharp gains earlier in the quarter. That widespread, simultaneous cooling suggests the market was working through the initial shock and beginning to stabilize, even if underlying geopolitical risk had not fully disappeared.
About Price Watch™
Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.
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