Japan’s Polyurethane Resin market stays firm amid tight supply, rising exports, and a stronger Yen, despite weak domestic construction and faltering demand from China and Southeast Asia.
Polyurethane Resin (Rigid Foam) prices across the Japanese market continue to hold steady at elevated levels this month (June 2025), underpinned by persistent supply-side constraints. Inventory shortages and continued export interest are keeping the market firm, even as buying momentum across domestic and key overseas markets remains sluggish. The limited availability of Polyurethane Resin is primarily attributed to earlier export redirection following the rollback of specific trade tariffs, which is allowing Japanese suppliers to divert volumes toward more favorable destinations, including the United States, Europe, and Southeast Asia. However, export demand from Southeast Asia began to taper following the conclusion of the Dragon Boat Festival, restricting the potential for additional price hikes.
Contributing to firm Polyurethane Resin pricing levels is the appreciation of the Japanese Yen by approximately 1.01% against the U.S. Dollar. This currency movement has prompted suppliers to adjust their Polyurethane Resin offers upward to hedge against adverse exchange rate fluctuations. Meanwhile, feedstock MDI prices have registered a marginal decline of 0.5%, though this is having a limited impact on market sentiment amid continued tightness in product availability.
Domestic production and stock levels remain constrained. According to the Japan Urethane Industry Association, Polyurethane Resin output has decreased slightly from 13,556 tonnes in April to 13,523 tonnes in early June, while inventories have declined more significantly from 3,848 tonnes to 3,783 tonnes. Shipments, on the other hand, have increased to 13,100 tonnes, reflecting sustained export movement. The resolution of labor disruptions at Japanese ports in late May has supported outbound flows, accelerating Polyurethane Resin inventory drawdowns.
Additional pressure has arisen from Mitsui Chemicals' ongoing 45-day maintenance shutdown at its Fukuoka-based TDI facility, which commenced in late May. The company’s long-term capacity reduction—scaling down from 120,000 to 50,000 metric tonnes annually—has further tightened supply, prompting sellers to revise Polyurethane Resin price quotations upward.
From an export perspective, Polyurethane Resin demand from China—one of Japan’s key trade partners—is also showing signs of sustained weakness. According to CRIC, sales among China’s top 100 developers fell 7.1% year-on-year to 1.3 trillion yuan from January to May 2025. CIH reported an even steeper 10.8% decline to 1.4 trillion yuan over the same period. For May alone, CRIC and CIH recorded sales contractions of 8.6% and 17.3%, respectively. These indicators reflect entrenched softness in China’s real estate sector, limiting downstream demand for Polyurethane Resin used in insulation and structural applications.
Overall, while pricing for Polyurethane Resin remains stable due to constrained supply and strong export flows, the medium-term outlook appears increasingly pressured by demand-side headwinds across both domestic and regional construction markets.
