US MDI Prices Remain Stable in Late August After 4.84% Monthly Decline

Methylene Diphenyl Diisocyanate (MDI) prices in the USA remained broadly stable in late August, although the market recorded a 4.84% month-on-month decline during the month. The MDI market experienced some volatility as temporary supply tightness was followed by improved availability and softer cost pressure. The BASF maintenance shutdown provided short-term support by reducing near-term MDI availability, but this effect faded as supply conditions normalized. Meanwhile, the US manufacturing environment remained steady, with the PMI at 53.9, unchanged from the previous month. The combination of stable economic activity and cautious procurement kept MDI trading conditions relatively balanced toward the end of August.

Demand for MDI remained mixed across downstream industries. Construction demand was resilient yet highly uneven, with some activity supporting consumption while other segments remained cautious, limiting broad-based purchasing momentum. Furniture demand remained resilient and provided a relatively stable outlet for MDI. Meanwhile, coatings and adhesives faced a contrasting market environment, resulting in uneven purchasing requirements. Overall, buyers continued to prioritize immediate requirements rather than building significant inventories. This restrained procurement behaviour limited opportunities for MDI suppliers to raise offers and kept spot activity measured through late August.

On the supply side, MDI fundamentals were influenced by both feedstock movements and the temporary BASF maintenance shutdown. Benzene, a key feedstock for MDI production, followed a mixed price trend during late August, providing neither sustained cost-driven support nor significant downward pressure. Aniline prices remained stable to firm, helping to keep production costs relatively supported. The BASF maintenance shutdown temporarily tightened MDI availability and created some upward pressure during the month, but improved supply later reduced this effect. As availability became more comfortable, MDI suppliers faced greater competition to maintain market share, limiting the scope for further price increases despite firm aniline conditions.

Looking ahead, MDI prices remained stable in the first week of September as balanced availability and cautious buying limited significant movement. However, prices are anticipated to increase slightly during the remaining weeks of September, supported by stable-to-firm aniline costs and the possibility of improved replenishment activity. Mixed benzene movements may provide some cost uncertainty, while resilient furniture demand and uneven but sustained construction activity should offer underlying support. Overall, MDI pricing is expected to shift from stability in early September toward a slight increase later in the month, provided supply conditions remain balanced and no major disruption occurs.