Methylene Diphenyl Diisocyanate (MDI) Price Trend Q4 2024
| Product |
Category |
Region |
Price |
Last Updated Month |
| Methylene Diphenyl Diisocyanate (MDI) |
Chemicals |
Saudi Arabia |
1,372 USD/MT |
October'24 |
| Methylene Diphenyl Diisocyanate (MDI) |
Chemicals |
Saudi Arabia |
1,353 USD/MT |
December'24 |
Stay updated with the latest Methylene Diphenyl Diisocyanate (MDI) prices, historical data, and tailored regional analysis
Asia
The MDI market in Asia experienced an initial price increase during the fourth quarter of 2024, driven by a temporary rise in demand from key downstream industries such as construction and automotive. This surge was further supported by limited supply, as production facilities operated at reduced capacities due to maintenance and logistical challenges. However, as the quarter progressed, production levels recovered, and inventories remained sufficient to meet existing demand, keeping the market relatively stable.
While the outlook initially appeared positive, weaker demand from downstream industries, particularly the construction sector, which faced slowdowns amid broader economic challenges, weighed on the market. By the end of the quarter, demand had further declined, leading to softened prices as increased inventory levels and reduced consumption pressured the market, resulting in a gradual decline in MDI prices. In Saudi Arabia, MDI prices were approximately 1,372 USD/MT (FOB) in October and around 1,353 USD/MT in December.
Europe
In the fourth quarter of 2024, Europe and Asia experienced a similar trend, with an initial price increase followed by a shift due to supply-demand dynamics. Production challenges were compounded by rising energy and raw material costs, exerting continued pressure on the market. However, as the quarter progressed, the market stabilized. A slowdown in key sectors, particularly construction and automotive, significantly impacted MDI demand.
The decline in industrial activity led to reduced consumption of MDI in polyurethane applications by the second half of the quarter. Consequently, prices declined toward the end of the quarter due to weak demand and rising inventory levels. By the close of Q4, these factors had contributed to a generally weaker outlook for MDI prices in Europe.
North America
In North America, the MDI market underwent similar shifts during Q4 of 2024. At the beginning of the quarter, prices rose due to production disruptions and increased demand from sectors such as automotive and construction. As the quarter progressed, supply and demand reached a balance, leading to price stabilization. However, overall demand remained lower than expected, particularly in the construction sector, which slowed due to higher interest rates and uncertain economic conditions.
A decline in demand was also observed in the automotive industry, contributing to softer MDI prices. By the end of the quarter, prices fell due to weakened demand from key downstream industries and high inventory levels. North America followed the same pattern as Asia and Europe, experiencing a short-term price increase, followed by stabilization, and ultimately a decline toward the end of the quarter.
Analyst Insight
According to Procurement Resource, MDI producers are impacted by the global economic slowdown, inventory pressures, and reduced consumption, suggesting lower prices in the upcoming months.
