On September 16, Wanhua Chemical’s overseas subsidiary Hungary’s BorsodChem officially released a price adjustment notice. Affected by the recent fluctuations in raw material prices and the continuous rise in energy costs in the European region, the company decided to unifyly increase the prices of all MDI, TDI and polyol products in the European market, with an increase of 300 euros per ton.
This price adjustment will take effect immediately. New orders will directly implement the new price, and existing orders will be fulfilled in accordance with the original contract terms. BorsodChem stated that this price adjustment aims to hedge against the continuously rising comprehensive production costs. The company will continue to ensure stable supply of goods in the European region, maintain high-standard customer service capabilities, and fully guarantee the normal production and operation of downstream manufacturing industries.
As the core polyurethane raw material production base in Europe, BorsodChem’s full-range price adjustment this time marks the official launch of a new round of price increases for polyurethane raw materials in Europe, which will directly transmit costs to local downstream industrial chains such as insulation, furniture, automobiles and building materials.
Overseas giants frequently adjust prices, and the global market is facing linked price hikes
Since September, the global polyurethane industry chain has entered a concentrated price increase cycle. International chemical leaders such as BASF, Huntsman and Wanhua have successively released price adjustment announcements, covering mainstream markets such as Europe, Southeast Asia, South Asia, the Middle East and other regions.
In early September, BASF took the lead in increasing the prices of MDI and TDI in Southeast Asia and South Asia markets by 250 US dollars per ton, and the price adjustment took effect immediately, which was mainly supported by raw material costs, logistics fees and tight regional supply and demand. On September 14, Wanhua Chemical followed up to adjust the sales prices in Southeast Asia and South Asia, raising the prices of MDI and TDI by 300 US dollars per ton, and polyether polyol by 400 US dollars per ton.
Meanwhile, Huntsman announced that starting from October 1, it will increase the prices of all MDI products in Europe, the Middle East, Africa and India by 285 euros per ton, further consolidating the upward trend of overseas market prices. Multiple enterprises have simultaneously released signals to support prices, and the overall global polyurethane raw material prices have entered an upward channel.
Domestic market also rises simultaneously, and raw material prices continue to stabilize and rise
Driven by overseas price hikes, combined with domestic plant maintenance and supply contraction, the domestic MDI, TDI and polyol markets have simultaneously warmed up, and prices have continued to rise.
Data shows that the spot price of domestic polymeric MDI has continued to rise since September. As of September 16, the mainstream market quotation has increased by more than 8% compared with the beginning of the month. The domestic TDI market remains high and firm, and local goods quotations have steadily climbed. Affected by the maintenance of major units such as Wanhua Yantai, the effective market supply has shrunk, the industry inventory is at a low level, and manufacturers have a strong willingness to support prices. In addition, foreign-funded enterprises such as Covestro have also raised the domestic TDI guidance prices simultaneously, further boosting the domestic market trend.
Polyol products have also followed the upward trend of the industrial chain. Driven by upstream raw material price increases and downstream rigid demand restocking, the domestic polyether polyol market has strengthened steadily, transaction prices have steadily increased, and market trading atmosphere has continued to improve.
Clear price increase logic, future market trend continues to improve
The collective price increase of polyurethane raw materials at home and abroad this round is driven by multiple favorable factors. On the one hand, the prices of international crude oil and basic chemical raw materials have fluctuated upward, and the bottom of the industrial chain costs has risen; on the other hand, European energy prices are running at a high level, the operation of multiple overseas units has been restricted, and the overall global supply is tight. At the same time, the traditional downstream peak season is coming, the terminal procurement demand has been steadily released, and the supply and demand pattern has continued to optimize.
Industry analysts said that the simultaneous price adjustments of global chemical leaders have significant regional linkage effects, and overseas price hikes will continue to be transmitted to the domestic market. In the short term, the prices of MDI, TDI and polyol raw materials will remain relatively strong, and the subsequent market trend will continue to dynamically adjust following the trend of crude oil, plant operating rate and changes in downstream terminal demand.
