Under Sluggish Offtakes, European Methylene Diphenyl Diisocyanate Prices Maintain Stability Entering October 2022
- 12-Oct-2022 11:00 AM
- Journalist: Bob Duffler
As per the latest reports, the orders for Polyurethane reduced in Europe's construction sector. The rising concerns due to the recession are influencing the end-user demand for Polyurethane sealant and two-component materials used in manufacturing household appliances. On the contrary, the order for Polyurethane is firm in the manufacturing industry. The product inventory levels are currently sufficient available to fulfill the downstream demand. While the low demand from major downstream industries like construction and household goods was counterbalanced by overall demand dynamics from foam and adhesive manufacturers, supporting this stability in Methylene Diphenyl Diisocyanate prices.
According to the latest data statistics, Methylene Diphenyl Diisocyanate discussions hovered at USD 3620/MT. The prices have remained almost the same as the previous month, with negligible increment in the last month's prices.
While its basic feedstock benzene costs decreased noticeably with a simultaneous increase in input costs and energy surcharges by the European Government, it balanced the fixed and variable costs on the production values. Consequently, Methylene Diphenyl Diisocyanate's production costs were not much affected. Additionally, the recent ease in Natural Gas prices due to improved levels relieved the pressure on the manufacturers.
Last month, the Methylene Diphenyl Diisocyanate consumptions from domestic end-user Polyurethane producers were sluggish due to high Natural gas costs and rising inflation. Simultaneously producers were dealing with high-cost pressure due to depreciating Euro values against US Dollar and a decline in orders. At the same time, previous product inventories were available at low prices. Due to this, productions were curtailed in the region to save energy for winter.
Methylene Diphenyl Diisocyanate prices will likely remain stable in the European region with some marginal increments followed by an enhancement in orders from the downstream Polyurethane manufacturers for the manufacturing sector. The demand for MDI from end-user furnishing and household sector will likely escalate amid the black Friday weekend in November as it is known for its generous discount, influencing consumer demand sentiments.