a result of the said demand and supply, the average PO price in 2021 was US$ 2,133 per ton, or the PO over propylene spread or US$ 1,357 per ton in average. The polyether polyols market in 2021 saw a global demand of about 8 million tons, an increase of approximately 3.4% from 2020. On the supply side, the capacity grew by 1,133,000 tons per year. However, in the first quarter of 2021 the scarcity of propylene oxide and polyether polyols as a result of the polar vortex in the US, coupled with the announcement of the Dual Control Energy Policy in China during the third quarter of 2021, caused the production disruptions. Nonetheless, the fourth quarter of 2021 saw the recovery of the target industries, including the automotive, bedding and furniture, electrical appliances and electronics, and packaging industries. bolstering the demand for polyether polyols. The polyether polyols price in 2021 was US$ 2,464 per ton, an increase of US$ 795 per ton compared to 2020. The Coating Resins industry continued to exhibit high growth and rapid recovery after experiencing a slowdown in 2020 due to the COVID-19 pandemic. In 2021, the demand for a number industries such as: industrial metal, industrial wood, coil & pre-coated metal, tires, vehicle refinish and others increased.Although there was an increasing demand in the automotive industry after the COVID-19 pandemic, the production was affected in H2 2021 due to the shortage of electronic parts such as semiconductors used in such industries causing no resumption to normal market conditions. FORECAST FOR THE PERFORMANCE MATERIALS AND CHEMICALS MARKET IN 2022 The COVID-19 situation is expected to consistently improve in 2022, thus positively influencing the global economy and helping the demand for HDI and HDI derivatives return to near-normal condition. However, the market is expected to rebalance with the return of most producers. The recovery rate will mainly depend on the recovery both the downstream industries in the automotive and construction categories as well as the availability and cost of sea freight. The prices of AN and MMA products in 2021 are projected to slightly decrease due to the easing of tight supply from 2021 and potential capacity expansion. On the supply side, the AN market saw three new production capacities from China, totaling 720,000 tons per year, higher than the original expectation at 318,000 tons per year. At the same time, there are more MMA manufacturers expected to operate in 2022, with three from China with a total production capacity of approximately 205,000 tons per year and another plant from India with a capacity of 60,000 tons per year, which exceeds the expected increase in demand by approximately 164,000 tons per year. Based on the growing demand due to economic recovery, relaxation of various control measures increased vaccination rates, and the demand for electrical appliances and office equipment under New Normal conditions, such as working from home, which will help support the demand for electrical appliances and sanitary equipment, will help support the downstream industries and the AN and MMA industries to continue to grow. PO products in 2022 are expected to continue positively from 2021 due to China’s Dual Control Energy Policy. However, there is also a negative factor from the sharp increase of supply in China at around 1,150,000 tons per year, with more than 60% of the capacity or equivalent to a production capacity of approximately 700,000 tons per year. They are factories that do not have downstream capacities to support (Non-Integrated plant). There is also a new production capacity of approximately 300,000 tons per year from the United States. It is estimated that more than 30% of this capacity will be exported to the Chinese and Asian markets. This is expected to result in a slight weakening of the propylene oxide market from the factors above. The global demand for polyether polyols in 2022 is expected to recover steadily due to adjustments to the new normal, which bolstered the demand for bedding, furniture, electrical appliances, and electronic devices, coupled with an increase in purchase of personal vehicles to avoid being exposed in crowded area. The demand for polyether polyols is projected to grow by about 360,000 tons. However, the additional commercial production in Hungary with the capacity of 200,000 tons per year puts the pressure on the produce price. Thus, in 2022 it is projected to see the slightly weakening price compared to 2021 in the polyether polyols market. The allnex business is expected to improve as a result of economic recovery. However, it is still expected to see the semiconductor scarcity in automotive industry until mid-2022, stressing the slight pressure on the coating resins demand. The situation is expected to be eased in the second half of 2022. In the long term, the growth of the coating resins industry during 2022-2025 is expected to be higher than the overall GDP growth. Furthermore, the Additives, another important business of allnex, also has a high growth prospect. 69 BUSINESS OPERATION AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL REPORTS AND FINANCIAL STATEMENTS APPENDIX