- Global polyurethane markets moved sharply upward in Q1 2026, driven by simultaneous supply tightening, cost escalation, and logistics disruptions across regions.
- Feedstock pressures intensified due to rising isocyanate and polyol costs, further amplified by crude-linked volatility and the closure of the Strait of Hormuz disrupting upstream flows.
- Downstream demand from construction, automotive, furniture, and insulation sectors remained firm, with buyers advancing procurement amid supply uncertainty.
Asia
In Asia, polyurethane prices strengthened as supply constraints and cost escalation converged during the first quarter of 2026. Tight availability of key feedstocks and maintenance shutdowns across production units reduced supply flexibility, while Middle East tensions disrupted naphtha flows through the Strait of Hormuz, tightening upstream availability and raising production costs. China witnessed strong price momentum as multiple segments across the polyurethane chain recorded broad-based increases, supported by synchronized production cuts and reduced operating rates globally, with over 1.9 million tonnes of MDI capacity affected during the quarter. Demand from insulation materials, appliances, and furniture remained stable, further supported by export recovery in downstream goods. In India, import dependence and freight disruptions increased landed costs, while delays in shipments due to rerouting added supply pressure, sustaining upward pricing sentiment.
Europe
In Europe, polyurethane markets remained firm due to elevated energy costs and constrained production throughout Q1’26. High natural gas prices forced operating rate reductions across energy-intensive facilities, limiting regional supply and strengthening global price benchmarks. Supply chain disruptions linked to geopolitical tensions increased logistics costs and extended transit times, reducing import competitiveness. Demand from construction insulation and industrial applications remained moderate but sufficient to absorb available supply, preventing price corrections.
North America
In Q1’26, polyurethane prices rose, supported by strong cost pressures and aggressive supplier pricing actions. Producers implemented multiple price increases, including hikes in MDI across the region, reinforcing pricing discipline amid rising costs. Additionally, additives and related materials saw price hikes of up to double-digit levels due to inflation in raw materials, energy, and logistics. The Middle East conflict disrupted global trade flows, increasing freight costs and causing shipment delays, which tightened supply availability. Buyers in construction, automotive seating, and furniture sectors accelerated procurement and stockpiling, further strengthening market conditions.
