BASF raises MDI prices by $200 per ton in ASEAN due to rising raw material and production costs pressures.
BASF has announced a price increase for its Lupranate® MDI (Methylene Diphenyl Diisocyanate) base products across ASEAN markets, effective immediately or in accordance with existing contractual agreements. The company stated that the price of these products will rise by $200 per metric ton, reflecting ongoing pressures within the global chemical supply chain.
This pricing adjustment comes as BASF continues to experience sustained increases in the cost of key raw materials required for MDI production. Over recent months, volatility in feedstock pricing, along with higher energy and logistics expenses, has significantly impacted manufacturing costs. As a result, the company has determined that revising product prices is necessary to maintain operational stability and ensure continued supply reliability to its customers in the ASEAN region.
MDI is a critical component used in the production of polyurethanes, which are widely applied in industries such as construction, automotive, appliances, and insulation. Given its importance across these sectors, fluctuations in MDI pricing often have a cascading effect on downstream industries. BASF emphasized that despite these challenges, it remains committed to delivering high-quality materials and maintaining strong relationships with its regional partners.
The ASEAN market represents a significant growth area for BASF, driven by expanding industrial activities, urbanization, and increasing demand for advanced materials. However, the company noted that external economic pressures—including rising crude oil prices, supply chain disruptions, and geopolitical uncertainties—have contributed to the persistent escalation of input costs. These factors have made it increasingly difficult for manufacturers to absorb expenses without passing on a portion of the burden to customers.
BASF further highlighted that the decision to increase prices was not taken lightly. The company continues to explore efficiency improvements, cost optimization strategies, and supply chain enhancements to mitigate the impact of rising expenses. Nevertheless, under current market conditions, the adjustment is seen as a necessary step to sustain production capabilities and uphold service standards.
Customers in the ASEAN region are advised to coordinate with their BASF representatives to understand how the new pricing structure will affect their specific agreements. The implementation timeline may vary depending on contractual terms, but the overall increase will be applied consistently across the region.
Looking ahead, BASF will continue to monitor market dynamics closely and adapt its strategies as needed. The company remains focused on balancing cost pressures with customer needs while ensuring long-term business sustainability.
