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MDI’s Four Major Producers All Raise Prices! Multiple Units Shut Down!

Polyester polyol 2026-03-31 18:01:19

Recently, the global chemical industry has welcomed an unprecedented wave of price increases. As the "pillar of stability" in the polyurethane industry chain, the MDI market has suddenly undergone a dramatic change: domestic leader Wanhua Chemical took the lead by raising the MDI quotation by 4,000 yuan per ton.

On March 19, 2026, BorsodChem, a subsidiary of Wanhua Chemical in Hungary, announced that the price of all its MDI products will be increased by €500 per ton (equivalent to RMB 3,982 per ton), effective immediately or as permitted by contract terms, for all supplies starting from April.

Bosid Company clearly stated in the price increase notice that the price adjustment is due to the recent developments in the Middle East, leading to a sharp increase in the cost of European natural gas and other raw materials.

International giants BASF, Dow, and Huntsman closely followed, simultaneously announcing price hikes across Europe, the Americas, and Asia-Pacific markets, with increases ranging from €200 to €500 per ton.

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BASF: On March 23, BASF announced that starting today or when contract terms allow, it will increase the prices of Lupranate MDI and Lupranate TDI in East Asia (excluding mainland China) by 500 USD/ton.

Dow announced on March 5 a price increase of €200 per ton for MDI products in Europe and $300 per ton in India, the Middle East, and Africa.

Huntsman: On March 5, Huntsman became the first to impose a €200/ton natural gas surcharge on all MDI products in Europe, the Middle East, Africa, and India (EMEI), and explicitly stated that this surcharge will be dynamically adjusted in response to geopolitical developments.

As a core raw material in the polyurethane industry chain, fluctuations in the price of MDI directly affect numerous downstream industries such as coatings, home appliances, automobiles, and construction. The current global MDI price hike is not coincidental but the result of a combination of factors including geopolitical conflicts, energy crises, and high industry concentration, serving as a clear testament to the global chemical industry entering a "war premium" mode.

Kumho and BASF plant maintenance exacerbates supply tightness!

Globally, the scheduled maintenance of multiple MDI production units has further tightened market supply. According to reports, Kumho Mitsui's MDI plant in South Korea is scheduled for maintenance around early April, lasting approximately one month, affecting an annual capacity of 200,000 tons. Additionally, BASF's MDI plant in South Korea shut down on March 16, with the outage initially expected to last about one week.

Since the outbreak of the conflict, the Middle East polyurethane market has evolved from the initial stage of supply disruption to a situation of supply shortages and price fragmentation. Major producers have significantly cut their supply due to force majeure and logistics restrictions. Market participants have stated that there is currently no product available on the market, leading to a supply shortage and trade merchants dominating the market. This supply vacuum is inevitably transmitted through the global trade chain to the European market.

The entire industry chain continues to face pressure.

According to estimates, the profit margin of MDI/TDI fell by 15%-25% in March compared to the end of February, and the industrial chain's profit structure is undergoing reconstruction.

For downstream end-users, this wave of price hikes represents a severe "stress test." MDI has extremely broad downstream applications, spanning sectors such as building insulation, home appliances, automotive, coatings, and adhesives. When the world's four major producers simultaneously raise prices, downstream enterprises have few alternatives—particularly those heavily reliant on imported MDI or polyurethane (PU) systems, which lack the ability to hedge against rising costs. If raw material prices remain elevated, end-user sectors like home appliances, automotive, and building insulation may adopt a wait-and-see approach in the short term, potentially delaying procurement plans and thereby disrupting the stability of the entire supply chain.

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MDI’s Four Major Producers All Raise Prices! Multiple Units Shut Down!

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