European Methylene Diphenyl Diisocyanate Prices Decline Amid Weak Demand From End Users
- 19-Dec-2022 4:39 PM
- Journalist: Patrick Knight
As per the latest report, the Methylene Diphenyl Diisocyanate price trend in the European region has decreased marginally during November on the back of firm inventory levels and product supplies.
The purchasing power of European citizens has weakened amid high inflation and increasing energy costs. It has shifted the consumer demand sentiments for luxury goods as the cost of living has escalated noticeably, causing an economic slowdown in the European region. Domestic producers cut back their purchases as manufacturing was unprofitable amid rising inflation, natural gas shortages, and soaring energy costs. Simultaneously, the Eurozone manufacturing Purchasing Manger’s Index remained slightly lower than the previous month and recorded below 50 in November 2022.
Methylene Diphenyl Diisocyanate production rates were curtailed amid decreased trading activities in the European automotive sector and reduced orders for flexible foam from the manufacturing industry, especially after the Black Friday sale in late November. Furthermore, the negatively influenced demand for the other Polyurethane component, including Polyol, amid the limited availability of the Toluene Diisocyanate component, increased the Methylene Diphenyl Diisocyanate inventory level in the European region. Consequently, the Methylene Diphenyl Diisocyanate prices hovered at USD 3580/MT in Germany and USD 3605/MT in Belgium after witnessing a monthly reduction of 1.6% in the October month discussions.
At the same time, Methylene Diphenyl Diisocyanate’s upstream Benzene prices decreased by 4% in the European region during the last month due to increased inventory levels and reduced demand from the Specialty Chemicals segment. Simultaneously the feedstock Aniline prices decreased by 1.6% during November due to weak orders from downstream industries. Furthermore, the reduction in upstream Dutch TTF natural gas prices in the past few weeks eased the fixed and variable costs on production prices of Methylene Diphenyl Diisocyanate.
As per ChemAnalyst assessment, “Despite the moderate to low production rates in domestic downstream industries, demand sentiments are likely to remain seasonal from the manufacturing sector, and orders for Methylene Diphenyl Diisocyanate are expected to remain moderately low until the end of the year.”