Singapore, December 2025 – The global MDI market is entering a new phase of synchronized price increases as major producers respond to intensified cost pressures and expected supply reductions. On December 8, Wanhua announced a USD 350/MT price increase for its MDI product lines sold in the Middle East, Africa, and Turkey—including WANNATE PM-200, PM-400, PM-700, PM-2010, as well as MDI-100, CDMDI-100L, and MDI-50. The adjustment is effective immediately unless governed by existing contracts.
This announcement follows a series of global MDI price hikes beginning November 20, covering Southeast Asia, South Asia, Europe, the Middle East, and Africa, with increases ranging from USD/EUR 200–350 per tonne. In China, polymeric MDI prices hit a yearly low of CNY 14,435/tonne in November, triggering weekly price adjustments by Covestro and firmer pricing from other producers. Together, these coordinated actions encompass nearly 75% of worldwide MDI demand, signaling a concerted effort to stabilize market pricing.
Key Drivers: Persistent Cost Inflation & Anticipated Output Cuts
Producers attribute these price increases to two primary factors:
(1) sustained cost inflation and
(2) looming supply constraints from widespread maintenance activities.
Cost Pressures Remain Elevated
Although European natural gas prices have eased from peak crisis levels, they remain around three times higher than pre-crisis averages, continuing to burden MDI operating margins. Meanwhile, dù benzene pricing in Rotterdam has held relatively stable, the sharp drop in European MDI market prices has intensified cost pressures on regional producers.
In response, companies such as Dow, Huntsman, BorsodChem, and BASF have implemented price increases across multiple regions, citing rising energy, raw material, and logistics costs. These moves reflect an industry-wide need to pass through higher operating expenses.
Supply Tightness Intensifies Due to Maintenance Outages
China is entering a concentrated cycle of scheduled maintenance, with Wanhua Ningbo, BASF Chongqing, and Covestro Shanghai—representing 45% of China’s total MDI capacity—shutting down units for planned overhauls in December. Adding to this, an unplanned outage at a major MDI plant in the Netherlands last month has amplified global supply concerns.
With demand holding steady, even modest supply cuts are expected to have a leveraged impact on market tightness, supporting firmer pricing for both polymeric MDI and pure MDI.
Price Transmission Already Underway
Following the unexpected supply disruption in the Netherlands, European MDI prices immediately climbed by EUR 100/tonne. Additional increases announced for Europe, Asia, and the Middle East are likely to be reflected in January contract settlements, given the monthly contracting structure used in these regions.
In China, polymeric MDI prices have rebounded from CNY 14,300/tonne to around CNY 14,800/tonne as of December 9—an increase of approximately CNY 500/tonne. This upward trend has helped restore confidence among market participants.
Outlook: Continued Tightness and Gradual Price Recovery Expected
Looking ahead, the MDI market is poised for continued firming due to:
Large-scale maintenance shutdowns extending into January
Reduced import volumes from the Middle East
Upcoming maintenance at Korean MDI producers
Typical pre–Spring Festival inventory buildup in China
With supply expected to tighten and downstream demand remaining stable, analysts anticipate a steady stabilization and gradual upward trajectory for global MDI pricing into early 2026.
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