Entering May 2025, the U.S. Polyurethane Resin market came under renewed pressure, with prices facing a notable downturn amid persistent oversupply and weak downstream demand. The domestic market observed ample availability of Polyurethane Resin, as producers continued to operate at elevated output rates despite subdued offtake volumes. According to data from the American Chemistry Council, U.S. production of major plastic resins—including Polyurethane Resin—reached 8.8 billion pounds in March 2025, marking a significant 10.4% rise compared to February. This surge, in the absence of robust demand, has resulted in inventory buildups, particularly in key regions such as Texas, where warehouses remain heavily stocked with unsold Polyurethane Resin.

Demand fundamentals for Polyurethane Resin remained unfavorable across key downstream industries. The construction sector, a principal consumer of Polyurethane Resin, reported a contraction in activity, with U.S. construction spending falling by 0.5% in March following a modest gain in the previous month. Elevated mortgage rates and surging material costs—amplified by higher import tariffs—have weighed on homebuilding sentiment. According to the National Association of Homebuilders, a recent 145% tariff hike on crucial Chinese inputs has driven up construction costs, thereby curbing demand for materials such as Polyurethane Resin. Consequently, housing starts fell sharply by 11.4% to a seasonally adjusted annual rate of 1.32 million units, further eroding domestic demand for Polyurethane Resin.

The automotive industry, another core consumer of Polyurethane Resin, also exhibited signs of deceleration. A slight decline in vehicle build rates has had downstream repercussions, with chemical order volumes—including Polyurethane Resin—dropping significantly. Huntsman Corporation’s CEO, Peter Huntsman, indicated during the firm’s April 2025 earnings call that many customers have pulled back on Polyurethane Resin purchases in response to ongoing trade uncertainty. This has led to cautious inventory management, tighter cash flow practices, and restrained procurement across the value chain, further dampening short-term demand for Polyurethane Resin.

On the supply cost front, Polyurethane Resin manufacturers remain highly exposed to feedstock volatility, particularly regarding Methylene Diphenyl Diisocyanate (MDI)—a critical raw material in Polyurethane Resin production. Approximately 20–25% of U.S. MDI requirements are met through imports, predominantly from China. However, trade frictions have disrupted this supply channel. The U.S. has imposed multiple rounds of tariffs on Chinese-origin MDI, beginning with a 30% duty and escalating to 145%, thereby inflating input costs for domestic Polyurethane Resin producers.

This challenging trade environment is expected to intensify. The U.S. International Trade Commission (ITC) is evaluating new antidumping duties on Chinese MDI, with a preliminary ruling expected in September 2025 and a final decision by March 2026. Should tariffs ranging from 300% to 500% be enforced, they could remain active for five years, posing long-term cost risks to Polyurethane Resin manufacturing. Industry voices, including Huntsman Corporation, have raised concerns about the limited substitution potential from European suppliers, given their higher logistics and production costs, which could add $400–500 per tonne to Polyurethane Resin feedstock expenses.

Despite these upward cost pressures, MDI prices declined by 2.8% at the start of May 2025, offering temporary relief to Polyurethane Resin producers. Nevertheless, the overall procurement sentiment for Polyurethane Resin remained weak, with buyers opting for short-term coverage rather than committing to bulk volumes. This conservative approach has kept Polyurethane Resin inventories elevated, as suppliers remain hesitant to adjust prices without clearer demand signals.

Looking forward, Polyurethane Resin prices are anticipated to stay under downward pressure throughout May. The compounded effect of tariffs continues to push up construction input costs, weakening demand for Polyurethane Resin within the building sector. Additionally, uncertainty surrounding U.S. trade policy has deterred international buyers, many of whom are reassessing their sourcing strategies and limiting exposure to U.S.-origin Polyurethane Resin amid global volatility, amidst falling procurement sentiment.

Considering this confluence of oversupply, fragile domestic demand, feedstock uncertainty, and waning export interest, the U.S. Polyurethane Resin market recorded a price decline of approximately 2.9% entering May 2025. This trend reflects a broader softening in fundamentals, with the Polyurethane Resin industry navigating a complex landscape shaped by policy risk, input inflation, and sluggish end-use demand.