Methylene Diphenyl Diisocyanate (MDI) Price Trend and Forecast

Methylene Diphenyl Diisocyanate Regional Price Overview

Get the latest insights on price movement and trend analysis of Methylene Diphenyl Diisocyanate in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Methylene Diphenyl Diisocyanate (MDI) Price Trend for the Q4 of 2024

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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.
 

Methylene Diphenyl Diisocyanate (MDI) Price Chart

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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.
 

Methylene Diphenyl Diisocyanate (MDI) Price Trend for the Q3 of 2024

Asia

The prices of Methylene Diphenyl Diisocyanate (MDI) displayed a fluctuating trajectory throughout the third quarter of 2024. In the early days of the quarter, the market maintained a cautious outlook with limited trading volume and poor follow-up on the new orders. The market was expected to maintain a balance between supply and demand, however, the majority of times throughout the quarter supply exceeded the demand, which kept the prices wavering at the lower end of the curve.

Some correction in prices was seen moving from August to September, however it was very temporary. The trajectory turned southward very quickly after that. There was limited cost support from the upstream aniline market. The downstream companies waited for the prices to fall and purchased only the needed amount, due to which the market was bound to remain range-bound.

Europe

The prices of MDI in the European market remained volatile, showing a fluctuating trajectory. The price in the European market mirrored the price trend of the Chinese market. The downstream demand remined weak in the said quarter as sales of polyurethane foams used in thermal insulation for buildings, refrigeration units, and piping dropped because of struggling construction sector. In Germany, the sales in the automotive sector had decreased, bringing down the overall demand for polyurethane foam, subsequently lowering the orders for MDI. Additionally, the fluctuating crude oil prices and fluctuating aniline prices provided little to no cost support to the MDI prices.

North America

The price of MDI in the North American market experienced fluctuations throughout the quarter, reflecting a wary sentiment among traders. Demand from the construction and automobile sector had been weak in the weeks leading up to September, contributing to a gloomy market outlook. Additionally, logistical challenges arose due to the hurricane season, which affected the supply of aniline as production facilities in some affected regions had to shut down for a while, but the challenges were short-lived and had limited effect on the supply of MDI.

Analyst Insight

According to Procurement Resource, MDI markets are anticipated to show improved market dynamics in the coming months. Some supply challenges will likely persist; however, the demand outlook suggests corrections.
 

Methylene Diphenyl Diisocyanate Price Trend for the Q2 of 2024

Asia

In Asian countries, the fluctuating sentiments of feedstock benzene were reflected well in the price trend of methylene diphenyl diisocyanate during the second quarter of 2024. Although, in the initial phase of the quarter, the production cost of the commodity rose significantly based on benzene, this momentum turned sour in the month of June. Meanwhile, the downstream industries, particularly polyurethane, presented a bleak outlook in the initial days but improved their procurement rates by the end of the quarter. Additionally, in China, after the termination of Dragon Boat festivities, industrial production picked up its pace, further supporting the stable trend of methylene diphenyl diisocyanate price.

Europe

During the second quarter of 2024, methylene diphenyl diisocyanate prices in Europe displayed a firm upward trajectory initially but showed signs of potential decline towards the latter part of the quarter. In the first half of May, consistent demand from the downstream polyurethane sector and a stable supply kept prices elevated. However, the automotive and construction sectors in Germany faced significant challenges, with declining car registrations and continued weakness in construction activity, which limited demand growth for methylene diphenyl diisocyanate.

The Euro Area's inflation rate remained steady, while the manufacturing sector saw a deterioration in business conditions, reflected in declining downstream production activity. The upstream cost support for methylene diphenyl diisocyanate also eased due to falling benzene prices, influenced by reduced crude oil consumption and increasing inventories caused by trade disruptions. As crude oil and benzene prices decreased, methylene diphenyl diisocyanate production costs declined with it. The construction sector's persistent lack of new orders further supported the sluggish demand for polyurethane products.

North America

Methylene diphenyl diisocyanate prices in the US exhibited a fluctuating trend influenced by dynamic demand-supply factors throughout the second quarter of 2024. The decreased consumption of polyurethane materials in the construction sector in the later stages of the quarter prompted methylene diphenyl diisocyanate producers to lower quotations to stimulate market offtakes. Additionally, consistent manufacturing rates, amid reduced benzene prices, eased production costs.

However, feedstock aniline supply constraints moderately increased cost support. The sluggish demand from the construction sector further contributed to the oscillating prices as US construction spending continued to decline. Despite this, the latter half of June experienced a price rise as buyers stocked up in anticipation of increased demand for thermoplastic polyurethane for PU sole footwear during the monsoon season.

Analyst Insight

According to Procurement Resource, the price trend of Methylene Diphenyl Diisocyanate is estimated to rise at the start of Q3 2024, with potential logistics disruptions from La Niña and firm demand from the polyurethane segment sustaining the upward trend.
 

Methylene Diphenyl Diisocyanate Price Trend for the Q1 of 2024

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Asia

The continued pressure from the building-up costs of raw materials and the rising cost of energy prompted chemical giants such as BASF to raise their price quotations of methylene diphenyl diisocyanate during the first quarter of 2024. The industrial sector reported a significant loss in their profit margins in the previous quarters as they were unable to extract the desired numbers amid the inclining pressure of global market challenges.

This also hampered their production rates as many of the Chinese production units limited their production numbers. Also, the loss of exporting margins due to the ongoing Israel-Hamas crisis and rising Houthi attacks on Red Sea shipments derailed the trading activities, prompting the methylene diphenyl diisocyanate traders and manufacturers to raise their price quotations.

Europe

The methylene diphenyl diisocyanate market in Europe witnessed a bullish trend in the first quarter of 2024, primarily driven by surging feedstock benzene prices due to volatile crude oil prices and OPEC+ production cuts. The shortage of labor due to ongoing port strikes in Europe further reduced the output and increased production costs. Despite these challenges, methylene diphenyl diisocyanate demand remained steady, with improved new orders in Europe.

However, tight methylene diphenyl diisocyanate supplies widened the gap between the supply and demand sectors of the market. The European energy industry's uncertainty over energy security heightened variable production costs. Additionally, the methylene diphenyl diisocyanate pricing pattern was also supported by the increased demand for polyurethane products in the manufacturing and construction sectors after a long period of stagnancy.

North America

In the first quarter of 2024, the methylene diphenyl diisocyanate market in the USA experienced bullish sentiments, prompting producers to raise quotations due to heightened demand and supply shortages. Sectors like furniture and refrigeration saw surges in demand, driving new orders for methylene diphenyl diisocyanate. However, escalating production costs resulted from rising feedstock benzene prices and crude oil prices amid global supply constraints.

Additionally, the methylene diphenyl diisocyanate production rates were hampered by moderate availability of aniline supplies from Asian exporters, as the supply chain delays and high freight charges affected the number of shipments and profit margins of Asian countries. The geopolitical tensions and positive economic data contributed to oil price hikes, further impacting methylene diphenyl diisocyanate production costs.

Analyst Insight

According to Procurement Resource, the price trend of Methylene Diphenyl Diisocyanate is expected to surge further in the next quarter as improving global industrial activities and ongoing stagnancy in trading patterns around the globe will favor the uptick in methylene diphenyl diisocyanate price trend.
 

Methylene Diphenyl Diisocyanate Price Trend for October - December of 2023

Asia

The bullish run of methylene diphenyl diisocyanate prices was halted in the fourth quarter of 2023. China’s Wuhan Chemical, which is one of the leading producers of methylene diphenyl diisocyanate, registered a lower rate of profits during this quarter.

The manufacturers and traders blamed the influx of low-cost raw materials such as propane, coal, and butane, which themselves registered an approximate double-digit fall in their prices, for this dip in the methylene diphenyl diisocyanate price trend. However, from the demand point of view, the consumer sentiments were lukewarm as they were hesitant to place bulk orders, which was well reflected in the trajectory of the methylene diphenyl diisocyanate price graph.

Europe

The European countries also followed the global trend in the methylene diphenyl diisocyanate prices. The subdued rate of procurement of chemicals was a consequence of a hike in energy prices as the blockage of Russian pipelines lowered the influx of coal, crude oil, and other energy production products. Further, the European government adopted strict measures to deal with rising inflation and thus raised their interest rates, leading to less borrowing from the banks and poor spending appetite of consumers, causing the methylene diphenyl diisocyanate price graph to face southwards.

North America

Similar to the events that were observed in Europe and Asian countries, the price trend of methylene diphenyl diisocyanate decreased in North America in Q4’23. The manufacturing sector in this region underwent a notable contraction due to inflationary pressures, which, therefore, caused a decline in the procurement rates of downstream industries. The decline in water levels in the Panama Canal also caused multiple disruptions to the shipping canals, which negatively impacted the dynamics of the market.

Analyst Insight

According to Procurement Resource, the price trend of Methylene Diphenyl Diisocyanate will surely be driven by the stumbling sentiments of the downstream industries and accelerating geopolitical tensions.
 

Methylene Diphenyl Diisocyanate Price Trend for the July - September of 2023

Asia

The inclining trajectory of methylene diisocyanate prices was a consequence of growing interest shown by the domestic as well as international sectors. Additionally, some of the manufacturing plants underwent maintenance shutdown resulting in the decline in the production activities of methylene diisocyanate. In addition to this, the rise in the cost of benzene and aniline also supported the upward journey of the methylene diisocyanate price graph.

Europe

The steady supply of methylene diisocyanate and the lack of demand in European countries negatively impacted the price trend and resulted in an explosion of stockpiles. Due to the increased price of crude oil upstream and the decreased energy supply from Dutch sectors, the third quarter of 2023 witnessed a significant decline in the methylene diisocyanate price trend. Further, the slowing down of the European economy escalated the downfall of methylene diisocyanate price trend.

North America

Unlike what was observed in the Asian countries and similar to what happened in Europe, the methylene diisocyanate price trend in North America declined during Q3’23. In this region, the manufacturing sector experienced significant contraction amid inflationary pressure leading to the fall in the rates of procurement rates of downstream industries. The shipping canals also faced several disruptions with the fall in the water levels, hampering the overall market dynamics.

Analyst Insight

According to Procurement Resource, the price trend of Methylene Diphenyl Diisocyanate are expected to face northwards in the upcoming quarters as its demand from the end-user industries is inclining but the global inventories are depleting.
 

Methylene Diphenyl Diisocyanate Price Trend for the First Half of 2023

Asia

Methylene Diphenyl Diisocyanate price trend depend on the prices of feedstock aniline and formaldehyde, along with the downstream demands from the polyurethane foams industry. During the said period, the Methylene Diphenyl Diisocyanate prices observed mixed price trend. The year 2023 witnessed a little revival in the automotive and manufacturing sector after a long halt because of the Covid 19 restrictions in China and other geopolitical tensions.

A sudden surge was witnessed at the beginning of the first quarter in the presence of the limited inventory stocks. Eventually, the Methylene Diphenyl Diisocyanate prices rose continuously in the first quarter, but as the inventories started overflowing with excess supplies, the price trend turned south in the second quarter. Overall, mixed market sentiments were observed throughout.

Europe

In Europe, the Methylene Diphenyl Diisocyanate market was mostly driven by the struggling purchasing power of consumers, given the long and ongoing battle with inflation. So, as the buying sentiments altered to being centered around fulfilling necessary requirements first, the automotive and other manufacturing sectors took a backseat. As a result, the downstream demands for Methylene Diphenyl Diisocyanate remained feeble, setting the prices on a downward trajectory in the said period. Overall, bearish market sentiments were observed.

North America

The North American Methylene Diphenyl Diisocyanate market almost replicated the European price trend since growing interest rates and inflation in the American market dictated the market sentiments. The collapse of two major US banks also fueled the dull market trend. Overall, the Methylene Diphenyl Diisocyanate prices remained in a slump for the majority of the discussed period.

Analyst Insight

According to Procurement Resource, the price trend for Methylene Diphenyl Diisocyanate are expected to fluctuate in the upcoming months as the market will continue to be driven by volatile downstream demands.

Procurement Resource provides latest prices of Methylene Diphenyl Diisocyanate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.