Supply Squeeze Deepens as BASF, Covestro, and Huntsman Issue Price Increases in North America
June 2, 2026 3 min read
BASF, Covestro, and Huntsman each issued price increase letters in the final week of May 2026, citing supply constraints and cost escalation. Increases range from $0.22 to $0.35/lb and take effect immediately or as contracts allow.
Spot trading for polymeric MDI (PMDI) and monomeric MDI (MMDI) in the US remained at elevated levels through the fourth week of May 2026, with supply tightness driving upward price renegotiations heading into June. Three major North American MDI producers issued formal price increase notices within eight days of each other.
PRICE INCREASES — LATE MAY 2026
Supplier
Date Issued
Increase
Effective
Huntsman All MDI products, N. & S. America
22 May 2026
+$0.24/lb
Immediately
Covestro LLC All MDI products, all segments, North America
28 May 2026
+$0.22/lb
1 July 2026
BASF All Lupranate® MDI products
29 May 2026
+$0.35/lb
Immediately
COVESTRO
Covestro declared force majeure on all North American MDI products on 19 May, citing unforeseen production issues. The disruption is linked to CO/chlorine feed problems at an Air Products CO unit. Resolution is uncertain; ICIS projects an end in June, while market participants have flagged July as more likely. The company’s price increase of $0.22/lb is effective 1 July or as contracts allow.
HUNTSMAN
Huntsman raised MDI prices by $0.24/lb across North and South America effective immediately, and extended order lead times to three weeks from confirmation. The Geismar, Louisiana facility is running two of three production trains during a scheduled maintenance window expected to last three to four weeks. Huntsman stated that pricing will be reviewed monthly going forward.
BASF
BASF issued a $0.35/lb increase on all Lupranate® MDI products effective immediately, noting this is in addition to any previously announced adjustments. BASF is planning a 45-day MDI production turnaround in July, which market participants have associated with pre-commissioning work for a planned 200,000-tonne/year capacity addition in the US, targeted for Q3 2026. Further price adjustments were not ruled out.
MARKET CONTEXT
Some suppliers have moved away from formal monthly price letters toward shorter renegotiation cycles, with adjustments occurring as frequently as every two weeks. Pre-buying of drummed PMDI, particularly in the spray foam segment, has complicated demand assessments. Polyols remain in limited supply, constraining finished B-side system availability. Upward price pressure is expected to persist through June given the concurrent nature of planned and unplanned outages across the producer base.
Pricing communication practices have shifted notably across the North American MDI supply chain. Several suppliers have moved away from formal monthly price letters, opting instead for shorter, informal renegotiation cycles — in some cases as frequently as every two weeks. This reflects the pace at which upstream cost conditions are moving and signals that contract pricing mechanisms are struggling to keep up with spot market realities. On the demand side, assessing true end-use consumption has become difficult. Active pre-buying of drummed PMDI — concentrated in the spray foam insulation segment — has pulled forward volume that would ordinarily appear in June and July order books, inflating near-term apparent demand while masking the underlying consumption rate. As building construction activity picks up seasonally, the gap between stocked inventory and actual requirements will become clearer, though by that point spot availability may have tightened further. Finished B-side system availability remains constrained. Polyols, which are in limited regional supply, are the primary bottleneck; systems houses and spray foam contractors are reporting difficulty securing complete formulated systems, not just isocyanate. This dynamic is compounding procurement challenges for downstream buyers who cannot substitute MDI independently of the polyol component.
Looking ahead, upward price pressure is expected to carry through June and into Q3. The concurrent nature of planned turnarounds — Huntsman’s Geismar maintenance, BASF’s 45-day July outage — and the unresolved Covestro force majeure leave little margin for supply recovery before peak seasonal demand arrives. Buyers operating without contract volume protections are most exposed.
