Sichuan Dacelue Investment Consulting: Global landscape reshaping — polyurethane industry enters a profit-upward cycle

The polyurethane industry’s value chain is structured as follows: upstream comprises core chemical raw materials such as MDI and polyols—characterized by concentrated production capacity and dominant influence over industry cost trends; midstream involves deep processing of various polyurethane products, forming the core operational segment of the industry; downstream spans diverse end-user sectors including construction, home appliances, automotive, and new energy. Overall, the industry’s value chain is driven by emerging downstream demand and reinforced by green process upgrades upstream, steadily advancing toward low-carbon, high-end, and domestically oriented development. 3. Polyurethane market size expands steadily Domestic demand for polyurethane materials remains stable with modest growth. The period from 2001 to 2018 marked the fastest growth phase for China’s polyurethane industry. By the later stage of the 13th Five-Year Plan (2016–2020), China’s polyurethane industry entered a maturity phase, with consumption growth slowing—but R&D investment continuing to rise, indigenous innovation capability further strengthening, and differentiated product offerings gradually expanding. As of 2024, China accounts for over 45% of global polyurethane patent applications. According to Chlor-Alkali Network, China’s compound annual growth rate (CAGR) of polyurethane product consumption stood at approximately 1.4% between 2018 and 2022. Globally, the polyurethane market size is projected to grow from USD 91.49 billion in 2024 to USD 135.1 billion by 2032, representing a CAGR of 4.4%. 4. Recently, the polyurethane value chain has entered a new round of centralized price adjustment window Domestically, Wanhua Chemical announced that, effective July 29, it would raise MDI and TDI prices in Southeast Asia by USD 200 per ton (approximately RMB 1,352 per ton). Overseas, on July 24, Huntsman issued a price adjustment notice, increasing prices for all MDI products across Europe, Africa, and the Middle East by EUR 250 per ton (approximately RMB 1,930 per ton), with the new prices taking effect on August 1, 2026. Additionally, Huntsman announced that, effective July 27, it would raise MDI and polyurethane formulation prices in India and the Indian subcontinent by USD 300 per ton (approximately RMB 2,020 per ton); Shanghai Huntsman’s August挂牌 price for polymer MDI was set at RMB 19,500 per ton—an increase of RMB 1,500 per ton. Meanwhile, BASF Shanghai’s August TDI挂牌 price was set at RMB 19,000 per ton—an increase of RMB 1,000 per ton. In their price adjustment notices, both Huntsman and Wanhua Chemical explicitly attributed the hikes to ongoing geopolitical tensions in the Middle East, which have significantly increased raw material, transportation, and logistics costs. On the supply side, frequent price adjustment announcements by leading domestic and overseas enterprises—combined with plant maintenance shutdowns and overseas supply disruptions—have strengthened market willingness to support higher prices. On the demand side, according to TianTian Chemical data, China’s MDI exports in the first half of 2026 totaled 505,000 tons, up 22.5% year-on-year; in June alone, exports reached 109,000 tons, up 56.4% year-on-year. During the same period, imports totaled 155,000 tons, down 5% year-on-year.

Monthly gain exceeding 10%! Wanhua, BASF, and Huntsman jointly hike polyurethane raw material prices

In the final trading week of July, the polyurethane value chain witnessed an almost synchronized global round of price adjustments—three industry giants—Wanhua Chemical, BASF, and Huntsman—implemented price hikes on the two core raw materials, MDI and TDI, within nearly the same time window, albeit at varying magnitudes. This is no ordinary seasonal price adjustment. Examining each company’s price adjustment notices and plant operation updates reveals a clear transmission chain: escalating logistics costs triggered by Middle Eastern geopolitical conflict → concentrated global plant maintenance compressing supply → leading enterprises seizing the opportunity to raise prices → downstream cost pressures transmitted progressively through the chain. With these three layers of logic converging, polyurethane raw material prices are entering a robust cycle rarely seen in recent years. A table summarizing this round of price hikes: First, key data points for this round: Domestically, market news on July 30 indicated that BASF Shanghai’s August TDI挂牌 price was set at RMB 19,000 per ton—up RMB 1,000 per ton month-on-month; Shanghai Huntsman’s August polymer MDI挂牌 price stood at RMB 19,500 per ton—a RMB 1,500 per ton increase month-on-month. According to Business Community Network monitoring, as of July 31, the benchmark domestic polymer MDI price had reached RMB 17,866.67 per ton—up 10.29% month-on-month and approximately 15.9% year-on-year. Overseas, Wanhua Chemical raised MDI and TDI prices in Southeast Asia by USD 200 per ton (approximately RMB 1,352 per ton), effective July 29. Huntsman adopted a multi-stage, region- and timing-specific strategy: raising prices in India and the subcontinent by USD 300 per ton (approximately RMB 2,020 per ton) effective July 27, then hiking all MDI product prices across Europe, Africa, and the Middle East by EUR 250 per ton (approximately RMB 1,930 per ton), effective August 1. Notably, the price-increase effect has already begun transmitting downstream: recently, TPU leader Meirui New Materials issued a price adjustment notice, raising prices for all TPU grades by RMB 1,000 per ton. The visible and invisible drivers: Supply contraction behind the geopolitical cost surge For this round of price hikes, Huntsman and Wanhua Chemical cited the official reason in their notices as “ongoing geopolitical tensions in the Middle East, significantly increasing raw material, transportation, and logistics costs.” This is indeed the overt pressure point—in July 2026, disrupted shipping through the Strait of Hormuz directly introduced supply uncertainty and risk for import-dependent markets across Europe, the Middle East, Africa, and Southeast Asia. Yet a deeper underlying cause lies in an unprecedented, synchronized tightening on the supply side. From July to August 2026, multiple global MDI/TDI plants entered maintenance or scheduled maintenance phases: Wanhua Chemical announced on July 14 that its subsidiary BorsodChem (Hungary) would begin sequential shutdowns for maintenance of its integrated MDI (400,000 tons/year) and TDI (250,000 tons/year) facilities starting July 17, with an estimated maintenance duration of around 35 days. Tosoh Rui’an’s 80,000-ton-per-year MDI facility halted operations for maintenance at the end of July, with an expected duration of about one month. BASF announced in early June its plan to conduct a 45-day MDI production shutdown for maintenance in July. The Xinjiang Julili 200,000-ton-per-year TDI facility was under maintenance shutdown in July. Wanhua Yantai’s 1.1-million-ton-per-year MDI facility also has a scheduled routine maintenance plan for August; Gansu Yin Guang’s 150,000-ton-per-year TDI facility is likewise slated for maintenance in early August.

BASF Shanghai Chemical Plant Leak Disrupts Polyurethane Raw Material Prices

1 day ago

BASF's Shanghai facility halted some production after a nitrogen oxide leak from wastewater equipment. While contained quickly with minimal safety impact, the incident has disrupted polyurethane core raw material prices.

caixin

2026-09-24

BASF Shanghai Chemical Plant Leak Disrupts Polyurethane Raw Material Prices

BASF Shanghai Chemical Plant Leak Disrupts Polyurethane Raw Material Prices

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