For the Quarter Ending June 2025
Europe
• Hexamethylene Diisocyanate Price Index in Europe experienced a quarterly drop of approximately 6.3% in Q2 2025, despite a notable price recovery in the latter half of the quarter. FOB Hamburg quotations began the quarter at around USD 2860/MT in April after a sharp 12% decline but rebounded in May and further rose by early July, driven by constrained supply of feedstock Hexamethylene Diamine, elevated production costs, and sustained logistical disruptions. The early-quarter decline outweighed the late-quarter gains on average, resulting in a net quarterly decrease.
• Why did the price of Hexamethylene Diisocyanate change in July 2025 in Europe? In early July 2025, HDI prices are expected to show a marginal upward trend, as labor disruptions, including port strikes and driver shortages, continue to impact supply chains, while stable demand from automotive coatings and PU footwear markets supports consistent offtakes despite rising freight and input costs.
• The Hexamethylene Diisocyanate Price Forecast for early Q3 suggests a moderately bullish trend, contingent on how quickly feedstock Hexamethylene Diamine availability improves, how port and transport bottlenecks across Northern Europe are resolved, and whether elevated shipping costs on intra-EU and Asia-bound routes continue.
• The Hexamethylene Diisocyanate Production Cost Trend remained elevated through June, due to constrained feedstock availability and higher raw material input costs. Compounding factors such as port labor shortages, rising fuel expenses, and regulatory transport toll changes in the Netherlands and Denmark further inflated regional logistics and production costs.
• The Hexamethylene Diisocyanate Demand Outlook held firm, supported by steady offtake in the automotive sector—especially for high-performance coatings used in EVs and hybrids—and in construction, where HDI remained essential in coatings and insulation materials for EU-supported infrastructure and green building projects.
• European imports and exports of HDI were constrained by continued logistical strain, with congestion at Rotterdam, Hamburg, and Bremerhaven ports delaying shipments and raising costs. Inland transport was further challenged by low Rhine water levels, limited container availability, and increased reliance on alternate routing due to policy-driven toll adjustments.
• Demand from France, Benelux, and Central Europe was mixed. While France and Germany saw some cooling in HDI consumption amid weaker macroeconomic activity and declining car registrations, Italy and Eastern Europe recorded stable demand tied to construction and footwear production. Regional differences helped offset broader market pressure and provided some support to overall HDI offtakes in Europe.
Asia-Pacific (APAC)
• Hexamethylene Diisocyanate (HDI) Price Index in APAC declined moderately on a quarterly basis, influenced by sluggish demand from industrial coatings and soft automotive activity, especially in China and South Korea. April saw a sharp decline due to inventory oversupply and weakened purchasing from construction-related applications. In May, prices continued to dip as buyer sentiment remained cautious amid tepid export activity and unfavorable macroeconomic indicators. However, June brought marginal improvement, supported by seasonal uptick in demand from specialty coatings, increased PU leather applications, and slight recovery in overseas orders.
• In early July 2025, HDI prices in APAC are expected to remain stable to slightly firm. Recovery in manufacturing PMI readings across key Southeast Asian countries, along with gradual normalization in construction pipeline projects, is likely to underpin short-term price resilience. Additionally, firm procurement in flexible coating segments for electronics and packaging provided downstream demand support.
• The Hexamethylene Diisocyanate Price Forecast for early Q3 2025 suggests a cautiously bullish sentiment, driven by steady demand from the coatings sector, anticipated recovery in exports to North America, and localized production curbs due to feedstock constraints and safety-related inspections in China.
• The Hexamethylene Diisocyanate Production Cost Trend remained volatile, driven by fluctuations in feedstock adiponitrile and hexamethylene diamine availability. Although easing crude oil prices offered temporary cost relief, rising compliance-related costs, inland transport bottlenecks, and freight imbalances in APAC continued to elevate overall producer margins.
• Hexamethylene Diisocyanate Demand Outlook showed moderate recovery. While industrial coatings demand improved with reactivation of delayed infrastructure and electronics-related projects, slow-moving orders from the automotive refinishing segment and cost-sensitive buyers in India limited full-scale rebound.
• China’s export performance for HDI showed a mild uptick by June-end, with increased shipments to Southeast Asia and Australia. Exporters leveraged spot opportunities amid favorable FX rates and rebounding vessel availability, though persistent global trade uncertainties capped gains.
• Domestic consumption remained concentrated in East and South China, driven by automotive interior refurbishment and sustainable packaging sectors. Urban repair projects and EV ecosystem investments supported end-use demand, while subdued rural construction spending kept overall growth in check.
North America
• Hexamethylene Diisocyanate (HDI) Price Index in North America registered a modest quarterly decline, driven by softened industrial activity, lower refinishing demand, and extended inventory cycles among coatings manufacturers. April and May saw gradual price erosion due to market saturation and prolonged turnaround schedules at downstream plants. However, June marked a marginal recovery, supported by stabilizing construction material orders and resurgent demand in powder coatings for automotive parts.
• In early July 2025, HDI prices in North America remained rangebound. Steady downstream demand from industrial flooring, automotive paint, and protective coatings segments provided baseline consumption. Meanwhile, cost pressure eased slightly as upstream supply chains normalized following geopolitical de-escalation.
• According to the Hexamethylene Diisocyanate Price Forecast, prices are expected to trend stable with an upward bias through mid-Q3 2025. However, weather-related disruptions, freight cost rebounds, and new tariff enforcement could pose upside risks.
• The Hexamethylene Diisocyanate Production Cost Trend remained relatively firm. While easing in crude oil and benzene prices in early July helped reduce upstream strain, logistical inefficiencies and sporadic shutdowns in regional intermediates production limited broader cost relief.
• The Hexamethylene Diisocyanate Demand Outlook stayed steady across Q2 2025. Demand from OEM and aftermarket automotive segments saw partial recovery, while infrastructure maintenance programs and resilient housing repair activity supported floor coating and exterior applications.
• HDI import volumes experienced slight volatility due to shipping delays and policy shifts. However, overall import availability was maintained through advanced sourcing contracts and supplier diversification. Inventory balancing by distributors ensured uninterrupted supply to key customers.
• Export activity remained limited but stable, with U.S.-based HDI producers targeting high-value coatings markets in Mexico and Canada. Strategic shipments under existing trade pacts ensured competitive positioning, despite rising compliance documentation and border inspection delays.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American Hexamethylene Diisocyanate (HDI) market experienced a generally bullish price trend, driven by supply-side constraints and steady demand from downstream industries. The quarter began with stable HDI production and a modest recovery in the U.S. manufacturing sector, which helped support market sentiment. Although crude oil prices initially fell, easing feedstock costs, production costs remained influenced by ongoing trade policy shifts and geopolitical factors.
During the Mid-quarter, the Arctic Blast caused disruptions in production, while port congestion, particularly in New York and New Jersey, hampered logistics and exacerbated supply chain challenges. Despite these hurdles, HDI prices remained steady, supported by consistent demand from the automotive and construction sectors. The automotive industry saw a slight rebound, especially in electric vehicle (EV) production, which increased demand for HDI in Polyurethane (PU) materials used in lightweight and interior applications. On the construction side, while demand remained mixed due to high material costs and labor shortages, some growth was anticipated, with overall spending projected to rise by 5.5% in 2025.
Towards the end of the quarter, the bullish momentum continued, driven by persistent supply challenges, and increasing chemical exports, despite rising tariffs and trade uncertainties. Strong automotive demand and moderate construction activity contributed to steady HDI consumption, reinforcing the overall upward price trend for the quarter.
APAC
During the first quarter of 2025, the Hexamethylene Diisocyanate (HDI) market in Asia experienced a mixed trend, with fluctuations in both prices and demand. At the start of the quarter, HDI prices increased due to stronger cost support from improved feedstock availability and stable production levels in key manufacturing regions. However, this positive price movement was tempered by weak domestic demand, particularly in the automotive and construction sectors. In February, the market shifted towards a bearish trend as stock availability improved after the Lunar New Year holidays, which put downward pressure on prices. Sluggish demand from key industries, including automotive and construction, further contributed to the decline. Towards the end of the quarter, market sentiment remained moderate, with steady demand in Southeast Asia, particularly for HDI in Polyurethane (PU) production. However, China's weak property market and declining automotive sales kept the overall market subdued. The combination of stable production, fluctuating feedstock costs, and varying demand across regions resulted in a cautious and mixed overall trend for HDI prices and market conditions during the quarter.
Europe
The price trend for Hexamethylene Diisocyanate (HDI) in the European region saw notable fluctuations during Q1 2025, driven by a mix of supply chain disruptions, geopolitical tensions, and sector-specific demand shifts. The quarter began with a sharp price increase, largely due to tight butadiene supplies, limited crude oil availability, and geopolitical tensions, particularly regarding Russia and Iran. Cold weather further strained heating oil demand, exacerbating supply shortages. Despite challenges in the construction sector, demand for HDI in the automotive industry, especially for Polyurethane (PU) materials, remained steady. However, by mid-quarter, prices dropped as demand weakened across the automotive and construction sectors, coupled with continued supply chain disruptions caused by severe weather and labor strikes at European ports. These factors led to a significant price decline. Toward the end of the quarter, the price trend recovered slightly, supported by stable production, moderate feedstock availability, and renewed demand from the automotive sector, particularly in the growing electric vehicle market, as well as a recovery in some construction markets, particularly in Italy. Overall, Q1 2025 for HDI in Europe was characterized by volatility, influenced by external and internal factors that impacted supply and demand dynamics.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the Hexamethylene Diisocyanate (HDI) market faced a decline, largely driven by weakened demand from the construction sector and slower activity in the furniture industry. Reduced consumption and high inventory levels in these sectors, coupled with slower purchasing by polyurethane manufacturers, resulted in a more subdued market. While demand from the automotive sector remained steady, the overall market showed less momentum, reflecting the broader economic slowdown.
HDI production stayed stable throughout the quarter, but a decrease in feedstock Butadiene prices and falling crude oil prices exerted downward pressure on production costs. Additionally, supply chain disruptions and reduced export orders, particularly from key markets like Europe and Australia, contributed to the overall dampened market sentiment.
Compared to the previous quarter, the market experienced a decline, largely attributed to weaker demand in critical sectors like construction and reduced export activity. Despite steady growth in the automotive sector and continued interest in specific applications like coatings, the overall market slowed, reflecting broader trends in industrial activity and global demand.
APAC
In the fourth quarter of 2024, the Hexamethylene Diisocyanate (HDI) experienced bearish market. HDI production remained stable, supported by moderate feedstock availability, although supply chain disruptions, such as delays at key European ports and rail congestion, affected the market. Demand from the automotive sector stayed firm, bolstered by a steady rise in new vehicle registrations, which continued to drive the need for polyurethane materials. However, the construction sector faced challenges, with weak demand due to economic uncertainties, inflation, and reduced housing activity, particularly in November and December. Compared to the previous quarter (Q3 2024), HDI demand saw a slight shift. While the automotive sector maintained its positive trend, the construction sector experienced a decline, reflecting broader economic pressures and stagnating investment in construction projects. Exports grew, but at a slower pace, especially to key regions like the U.S. and European Union, where tariffs and logistical delays remained a concern. Overall, while demand from the automotive sector and certain segments of the coatings industry remained stable, the market showed slower momentum in Q4. The weakened construction sector and slower export growth led to a more balanced market, in contrast to the stronger dynamics of the previous quarter.
Europe
In the fourth quarter of 2024, the Hexamethylene Diisocyanate (HDI) market saw an 18% decrease from the previous quarter, driven by weak demand and various supply challenges. Production rates remained stable, but export levels dropped while domestic inventories increased due to sluggish demand. The construction sector experienced low demand as economic uncertainties and reduced housing activity weighed on consumption. While the automotive sector initially showed some strength with a rise in car registrations, it could not offset the declines in other sectors. On the supply side, HDI production faced cost pressures from rising crude oil prices and disruptions at key European ports, though feedstock availability remained moderate. Butadiene supply issues early in the quarter further impacted production costs. Although crude oil supplies improved in the latter part of the quarter, delays in shipping and growing domestic inventories continued to affect the market. The European construction sector struggled with economic challenges, and housing activity contracted sharply. The automotive sector also saw a decline in new car registrations by December, further dampening HDI demand. Inflationary pressures persisted, contributing to the overall market downturn, and further reducing HDI demand in both sectors.
For the Quarter Ending September 2024
North America
In Q3 2024, the Hexamethylene Diisocyanate (HDI) price trend oscillated in the North American region, showcasing moderate sentiments in the market. Initially, at the beginning of the quarter, HDI prices decreased amid reduced demand for HDI from PU segment amid sluggish consumption of Polyurethane materials in the construction and manufacturing sectors.
In the middle of the third quarter, HDI production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations. Consequently, the second half of the quarter witnessed a price increment, underlining a gradual price uptick.
Towards the end of Q3, improved availability of Crude Oil in the international market and increased refinery operations resulted in firm availability of feedstocks and negatively impacted the HDI production costs. At the same time, the impact of Hurricane Helene resulted in reduced consumption from downstream industries and an increase in domestic stockpiles due to affected supply chain activities. The market players negatively revised their quotations and overall, the HDI prices witnessed a decline in Q3 2024 from the previous quarter.
APAC
In Q3 2024, the Hexamethylene Diisocyanate (HDI) market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased upstream Butadiene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the upstream Butadiene supplies and HDI production rates. HDI prices fluctuated and rose marginally, and the price comparison between the first and second half of the quarter revealed a modest increase, highlighting slight recovery efforts. Towards the end of the quarter, the increased availability of upstream Butadiene supplies, driven by improved refinery operations and Crude Oil availability amid a resumption of Crude Oil supply from Libya in September 2024, negatively impacted the production costs. Simultaneously, offtakes for moderately low from the PU segment during the period. Conclusively, from the previous quarter in 2024, overall prices fell from the previous quarter, indicating a downward trend in Q3, 2024.
Europe
During the third quarter of 2024, the European Hexamethylene Diisocyanate (HDI) market experienced a predominantly negative pricing environment, and the price trend shifted its movement due to imbalanced demand-supply dynamics. Throughout the quarter, the sluggish demand from the polyurethane sector, particularly within construction, exerted downward pressure on prices. The Eurozone's construction sector continued its downturn, significantly impacting HDI consumption. Additionally, the manufacturing sector faced challenges, with the Eurozone Manufacturing PMI indicating declining new orders and rising costs, further dampening demand. Supply-side dynamics also played a role, as supply availability improved post-summer holidays, yet demand failed to match this increase, exacerbating inventory levels. From the mid-quarter, the demand-supply imbalances and external economic pressures caused a marginal incline in HDI prices. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Despite no reported plant shutdowns, operational rates were closely monitored to manage the surplus supply. The quarter concluded after an overall 15% drop from the last quarter's prices, indicating a persisting downward trend.
Frequently Asked Questions (FAQs):
1. What is the current price of Hexamethylene Diisocyanate in Europe?
By the end of Q2 2025, Hexamethylene Diisocyanate prices in Germany stood at approximately USD 3380/MT FOB Hamburg.
2. Why did Hexamethylene Diisocyanate prices change in July 2025?
o APAC: Prices slightly firmed on improved coatings demand, restocking, and recovering exports.
o North America: Prices stayed stable with steady automotive demand and easing cost pressures.
o Europe: Prices edged up amid tight feedstock supply, logistics issues, and stable end-use demand.
3. How do regional markets differ in Hexamethylene Diisocyanate demand?
• Europe: Demand remained steady, driven by automotive coatings and construction insulation.
• APAC: Moderate recovery supported by specialty coatings, PU leather, and electronics.
• North America: Stable demand led by industrial flooring, automotive paints, and infrastructure maintenance.