Polyurethane Resin prices trended upwards across the European market in late July 2025 as lower-priced imports originating from Asia, observed in June 2025, gradually disappeared from the market amidst a decline in Asian export volumes during that month. The price increase was primarily supported by a rise in the cost of feedstock TDI (Toluene Diisocyanate), enabling sellers to slightly raise their offers during this brief pricing window.
Production of Polyurethane Resin was notably low due to the seasonal summer holidays, resulting in outages and planned maintenance shutdowns. One production system was confirmed to have undergone maintenance turnaround. However, this had no material impact on supply availability, as stocks at Polyurethane Resin producers’ warehouses remained plentiful. This oversupply condition meant that even when a supplier declared force majeure, the market experienced no significant shortages which continued to keep spot material adequate . Ordering activity remained subdued, reflecting the ongoing summer lull, with weak demand from both the automotive and comfort sectors. The construction industry maintained its procurement activity at a low but stable level, which helped support mild upward movement in prices of Polyurethane Resin.
Production costs of Polyurethane Resin rose due to an increment in TDI prices as European production significantly slowed during the month. One supplier was reported to have shut down its plant for an overhaul, and another declared force majeure, temporarily constraining domestic output and limiting spot availability of Polyurethane Resin.
Exports of Polyurethane Resin from Asia, particularly from China, fell significantly as indicated by the fact total exports from China declined from 12,126,171 kg in May 2025 to 11,441,338 kg in June 2025, representing a decline of approximately 5.6%. Meanwhile, exports of Polyurethane Resin to Germany from China decreased from 1,615,122 kg in May to 1,609,226 kg in June, a marginal decline of 0.36%, data from China Customs showed. This reduction contributed to tighter availability of competitively priced material in the European market resulting in lower priced imports gradually disappearing from the market landscape.
However, the pace of price increases for Polyurethane Resin remained modest, with prices rising only 1.7% during late July 2025. This was largely due to sluggish offtakes and limited market activity amid seasonal holidays resulting low participation from both the buy and sell side. Despite the high inventory levels, sellers did not accept, citing the prolonged pricing slump during June 2025. As a result, backlogged inventories were offered at slightly elevated prices, with the Polyurethane Resin sellers initially targeting increases in the range of EUR 50 to EUR 70/MT. However, strong buyer resistance led to increments being realized in the ranges of approximately EUR 30 to EUR 45/MT.
Market feedback indicated that procurement sentiment remained largely pessimistic, due to expectations of lower import volumes from Asia in July 2025 and an approximate 18% increase in freight charges from Asia to Northwest Europe during the month. This made Chinese-origin inventories increasingly uncompetitive, further supporting the Polyurethane Resin price firmness and sellers' refusal to accept discounted offers.
As per expectations for further the Polyurethane Resin price increases prevail across Europe, albeit slowly amidst the absence of competitively priced Asian imports and ongoing seasonal maintenance activities, which continue to limit production output.
