Global MDI suppliers are moving in unison to raise prices, driven by persistent cost inflation and growing expectations of tighter supply due to upcoming maintenance shutdowns.
Wanhua Leads Latest MDI Price Increase
On December 8, 2025, Wanhua Chemical announced a price increase across its MDI product portfolio supplied to the Middle East, Africa, and Turkey. Prices for WANNATE PM-200, PM-400, PM-700, and PM-2010 were raised by USD 350 per metric tonne, while WANNATE MDI-100, CDMDI-100L, and MDI-50 also saw an identical increase. The new pricing takes effect immediately or in accordance with existing contract terms.
This announcement follows a broader wave of MDI price adjustments that began on November 20, when major global producers implemented price hikes of USD/EUR 200–350 per tonne across Southeast Asia, South Asia, Europe, the Middle East, and Africa.
China MDI Market Shows Early Signs of Rebound
In contrast, China’s polymeric MDI market experienced significant price pressure earlier in November, with average monthly prices falling to CNY 14,435/tonne, the lowest level recorded this year. Since early November, Covestro has introduced weekly price increases in China, while other key suppliers have largely held prices firm.
These coordinated actions now cover approximately 75% of global MDI demand, signaling a deliberate effort by producers to stabilize the MDI market price and protect margins.
Key Drivers: Rising Costs and Planned Production Cuts
Sustained Cost Pressure on MDI Producers
From a cost perspective, MDI manufacturers continue to face elevated operating expenses. While European natural gas prices have retreated from crisis-level highs, they remain nearly three times above pre-crisis averages. Meanwhile, benzene prices in Rotterdam have remained relatively stable, but declining MDI prices earlier in the year further compressed margins for European producers.
As a result, major players such as Dow, BorsodChem, and Huntsman have cited higher energy, raw material, and logistics costs when announcing recent MDI price increases.
Supply Tightening Due to Maintenance Shutdowns
On the supply side, scheduled maintenance outages are expected to significantly reduce output. Facilities operated by Wanhua Ningbo, BASF Chongqing, and Covestro Shanghai—together accounting for roughly 45% of China’s total MDI capacity—have been or will be shut down during December.
In addition, an unplanned shutdown at an MDI unit in the Netherlands last month has intensified concerns about global supply tightness. With MDI demand remaining relatively stable, even limited production disruptions are having an outsized impact on market sentiment.
Price Transmission Across Regions
Following the unexpected supply disruption in Europe, European MDI prices rose immediately by approximately EUR 100/tonne. Further price increases announced by leading producers are expected to be reflected in January contract prices, in line with typical monthly pricing mechanisms.
In China, polymeric MDI prices rebounded from around CNY 14,300/tonne to CNY 14,800/tonne by December 9, representing an increase of about CNY 500/tonne. This recovery has helped restore confidence across the domestic MDI market.
MDI Market Outlook: Gradual Stabilization Expected
Looking ahead, several large-scale maintenance turnarounds are likely to extend into January. Additional factors—including reduced imports from the Middle East, planned maintenance at Korean MDI producers, and pre-Spring Festival inventory stocking—are expected to further constrain supply.
Taken together, these developments point toward continued MDI market stabilization and a gradual upward pricing trend in the near term, particularly if demand remains steady.
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