Why did MDI and TDI prices rise strongly in July 2024 despite weak global oil price transmission to the chemical sector?

The MDI and TDI price surge was driven by three core factors: (1) persistent Middle East geopolitical conflict disrupting logistics and raising raw material and ocean freight costs; (2) synchronized maintenance shutdowns across major global production facilities—including Wanhua’s Hungary plant (35 days), Tosoh Ruian (1 month), BASF (45 days), and Wanhua Yantai (scheduled in August)—tightening supply; and (3) extreme market concentration, where the top five producers control over 90% of global capacity, enabling coordinated price hikes that trigger broad price resonance.

What is the near-term outlook for MDI and TDI markets according to the article?

In the short term, MDI and TDI prices are expected to remain firm or rise further due to combined cost support and supply constraints; global MDI capacity growth is projected to stay below 2% in 2026, while no new TDI capacity is expected globally through 2026–2027, sustaining a tight supply-demand balance or even creating deficits—especially as traditional downstream demand sectors like refrigeration/cold chain and building insulation recover seasonally and restock activity picks up, though sustained price increases depend on whether downstream industries can absorb the higher input costs.

Polyurethane Raw Material Market Shows Independent Strong Performance

Aug 7, 2026

Major producers including Wanhua, BASF, and Huntsman raised MDI and TDI prices due to supply constraints from plant maintenance. Despite volatile oil markets, the polyurethane raw material sector remains strong with tight supply expected through 2027.

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2026-08-07

Polyurethane Raw Material Market Shows Independent Strong Performance

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