For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Methylene Diphenyl Diisocyanate Price Index in APAC remained volatile during Q2 2025, closing at USD 2070/MT FOB Qingdao in early July. After a sharp 9% price decline in April 2025, Methylene Diphenyl Diisocyanate prices rebounded in the first half of Q2, driven by tight global supplies and seasonal stocking activities. However, prices softened slightly by late May amid weak export activity, elevated inventories, and easing feedstock costs. June saw a balanced market with stable demand from automotive PU applications and subdued construction demand. A modest 1.4% uptick was recorded in early July, supported by firm downstream activity and easing crude oil costs following geopolitical de-escalation.
• Why did the price of Methylene Diphenyl Diisocyanate change in July 2025 in APAC? In early July 2025, MDI prices increased slightly by 1.4% as polyurethane demand from the automotive sector remained firm. Supplies stayed limited, while upstream feedstock benzene costs softened after crude oil prices fell due to easing geopolitical tensions between Israel and Iran, lowering risk premiums across global energy markets.
• The Methylene Diphenyl Diisocyanate Price Forecast for early Q3 2025 suggests cautious stability with mild upside risks, driven by ongoing downstream PU consumption, potential feedstock volatility, and energy price movements, alongside supply limitations stemming from trade restrictions and logistical headwinds.
• The Methylene Diphenyl Diisocyanate Production Cost Trend remained pressured by fluctuating feedstock Benzene and upstream crude oil prices. Cost support fluctuated throughout Q2, with sharp spikes driven by Middle East tensions in June, followed by relief in early July. Despite consistent production, regional supply remained tight due to freight issues and tariff concerns.
• Methylene Diphenyl Diisocyanate Demand Outlook is steady but mixed. Automotive sector demand—especially from EV and hybrid vehicle platforms—remains resilient, driving stable PU foam usage. In contrast, construction sector demand stayed subdued amid project delays, high inventories, and financing bottlenecks, weighing on near-term insulation-related consumption.
• China’s export performance for MDI remained firm in June, with outbound volumes to Southeast Asia and North America rising due to pre-tariff front-loading. Improved vessel availability and stabilized port activity facilitated shipments, though cautious sentiment persisted due to global trade uncertainties.
• Domestic consumption in East and South China stayed steady, supported by PU demand from automotive and infrastructure sectors. Provinces like Guangdong and Jiangsu benefited from sustained EV rollout and insulation demand, although construction remained patchy. Logistics constraints and rising shipping costs also moderated supply-chain momentum.
North America
• MDI prices exhibited fluctuation throughout the quarter. The price started at USD 2690/MT in early May, with a 3% price reduction due to weak demand and trade disruptions. By late April, there was a 1.5% recovery, driven by rising feedstock costs (Benzene) and geopolitical factors affecting crude oil prices. A slight decrease of 0.5% was seen in June, reaching USD 2640/MT, attributed to limited demand from automotive and infrastructure sectors, despite logistical disruptions and geopolitical tensions.
• In early July, prices decreased marginally by 0.5%, reaching USD 2640/MT, driven by softened demand from the automotive sector, especially for electric vehicle components, while the construction sector faced challenges due to high mortgage rates, limiting demand for construction materials.
• Prices are expected to remain stable with slight upside potential. However, external risks, such as geopolitical instability and trade policy changes, particularly in the Middle East, could exert upward pressure on prices.
• MDI production costs were moderately elevated, primarily due to rising feedstock costs (Benzene) and ongoing logistical challenges. While crude oil prices softened slightly, the geopolitical tensions added pressure to feedstock pricing and shipping costs, tightening margins for producers.
• MDI demand remained moderate in Q2 2025, with steady consumption in the automotive sector (especially for electric vehicles and PU components) and non-residential infrastructure projects. However, the residential construction sector showed weakness, constrained by high mortgage rates and soft project initiation.
• MDI export activity faced trade disruptions and logistical bottlenecks, exacerbated by newly implemented tariffs. Despite these challenges, steady production and inventory management allowed consistent supply to key North American markets.
• The “Liberation Day” tariffs and changes in trade policies with Canada and Mexico, alongside port congestion and rising freight costs, disrupted trade flows. Export volumes were impacted as U.S. producers adjusted to new tariff regimes and logistical constraints.
Europe
• Methylene Diphenyl Diisocyanate (MDI) prices in Europe registered a quarterly decline of approximately 11.3% in Q2 2025, driven by persistent weakness in end-use demand, cost-side volatility, and ongoing logistical disruptions. FD Hamburg quotations fell from around USD 2225/MT in early April to USD 1975/MT by early July, with monthly declines of 6.1% in April, 9.8% in May, and 2.9% in June. Despite stable production fundamentals and some regional demand support, bearish sentiment across the construction and automotive sectors weighed heavily on overall market performance.
• The Methylene Diphenyl Diisocyanate Price Forecast for early Q3 2025 points to a cautiously stable-to-soft trend, dependent on benzene feedstock volatility, downstream polyurethane demand stability, and easing of logistical headwinds, including port congestion, freight capacity issues, and workforce shortages.
• MDI Production Cost Trends remained volatile throughout Q2. Early-quarter cost relief from falling Brent crude oil prices—due to de-escalation in the Middle East—was reversed in late June as geopolitical tensions resurged, elevating energy and shipping risks. Rising tolls and inland transport costs in Denmark and the Netherlands further strained regional producer margins amid ongoing port delays at Hamburg, Antwerp, and Bremerhaven.
• The Methylene Diphenyl Diisocyanate Demand Outlook remained weak, reflecting soft construction activity and sluggish automotive output. Construction demand was hindered by high borrowing costs and reduced residential starts, especially in Germany and France, though moderate support was observed in the UK and Eastern Europe. In automotive, reduced petrol and diesel vehicle sales were only partially offset by EV production. Overall, MDI demand remained limited by conservative procurement strategies, margin pressures, and muted consumer confidence.
• European MDI trade flows were disrupted throughout Q2 by labor shortages, regulatory burdens, and transport constraints. Low Rhine River water levels and bottlenecks under the EU Import Control System 2 delayed shipments and added compliance costs, compounding toll-related expenses and reducing delivery efficiency.
• Demand trends across the region were uneven. While Germany and France struggled with low consumer confidence and weak offtakes, Italy and Eastern Europe saw more resilient demand from sectors like automotive interiors, insulation systems, and industrial foams. These pockets of stability helped offset broader declines but were insufficient to reverse the overall downward trend.
For the Quarter Ending March 2025
North America
In Q1 2025, the Methylene Diphenyl Diisocyanate (MDI) market in the North American region experienced a generally positive price trend, driven by a mix of supply constraints and stable demand. Early in the quarter, production challenges, including disruptions from the Arctic Blast and supply chain delays, contributed to upward pressure on prices. The availability of key feedstocks, such as Benzene, was affected by rising demand in other sectors, further elevating production costs.
Despite these challenges, demand for MDI remained steady, bolstered by the automotive sector's recovery, especially with increased sales of light trucks and electric vehicles. The construction sector, while showing slower growth due to rising material costs and labor shortages, still contributed to a stable demand for MDI in insulation and other building materials.
Geopolitical tensions, particularly trade negotiations involving tariffs on North American goods, added uncertainty to the market, impacting trade flows and further straining the supply chain. As the quarter progressed, these factors balanced out, leading to a stabilization in prices toward the end of March, with moderate growth expected in the coming months.
APAC
During the first quarter of 2025, the Methylene Diphenyl Diisocyanate (MDI) market in the Asian region experienced a mixed trend, with fluctuations in both prices and demand across the region. Initially, prices remained firm due to the Lunar New Year holidays in key regional producer China. After that, a bearish momentum took hold. The weakening demand from key downstream sectors such as construction and automotive, driven by a significant decline in property sales, put downward pressure on prices. The construction industry saw a reduction in demand for MDI-based materials like insulation due to lower real estate investments. While electric vehicle (EV) sales provided some support to MDI demand, the overall decline in internal combustion engine (ICE) vehicle sales, coupled with weaker automotive performance in regions like Thailand, contributed to the bearish market sentiment. On the supply side, production remained stable, with feedstock Benzene availability supporting steady output. However, fluctuations in feedstock costs due to crude oil price volatility and trade-related disruptions, including new U.S. tariffs and China’s retaliatory measures, complicated the supply chain. By the end of the quarter, rising inventories and muted demand forced producers to reduce prices, with MDI quotations dropping significantly. Despite some isolated demand growth in Southeast Asia, the overall market sentiment for MDI in Asia during Q1 2025 remained largely bearish.
Europe
Like the North American region, the Methylene Diphenyl Diisocyanate (MDI) market in Europe experienced a bullish price trend in Q1 2025, largely influenced by supply disruptions, geopolitical factors, and steady demand from the automotive sector. Early in the quarter, MDI prices saw an upward movement, driven by rising production costs stemming from limited availability of Benzene, as well as seasonal weather disruptions at European ports that tightened supply. Despite these challenges, the automotive sector continued to provide stable demand, supporting MDI prices. In contrast, the construction sector faced ongoing difficulties due to inflationary pressures, high material costs, and reduced activity. Geopolitical factors, including U.S. sanctions on Iran and potential tariffs on European goods, further complicated supply chains and price volatility. In the latter part of the quarter, MDI prices showed signs of stabilization, but ongoing disruptions, including strikes at key European ports and logistical issues, continued to hinder smooth delivery schedules. By the end of the quarter, despite some regional growth in Italy’s construction sector, the overall market sentiment shifted towards a more cautious outlook, with weaker demand from both the automotive and construction sectors, signaling a bearish trend moving into Q2 2025.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the Methylene Diphenyl Diisocyanate (MDI) market saw a decline, driven by reduced demand from the construction and furniture sectors. Weak consumption and high inventory levels in these industries, combined with slower purchasing from polyurethane manufacturers, contributed to a more subdued market. While demand from the automotive sector remained steady, the overall market activity was less dynamic, reflecting the broader slowdown.
MDI production remained stable throughout the quarter, but a decrease in feedstock Benzene prices and falling crude oil prices put downward pressure on production costs. Additionally, supply chain disruptions and a reduction in export orders, particularly from Europe and Australia, further dampened market sentiment.
Compared to the previous quarter, the market experienced a 2% decline. This was largely due to weaker demand in key sectors like construction and reduced export activity. Despite growth in the automotive sector and continued interest in environmental coatings, the overall momentum in the MDI market slowed, mirroring broader trends in industrial activity and global demand.
APAC
In the fourth quarter of 2024, the Methylene Diphenyl Diisocyanate (MDI) market showed mixed performance. MDI production remained stable, supported by moderate feedstock availability, while demand from the automotive sector stayed strong, driven by continued growth in new passenger vehicle registrations. However, the construction sector faced challenges, with weakened demand due to subdued activity and a contraction in business sentiment, especially in November. Compared to the previous quarter (Q3 2024), MDI demand shifted. The automotive sector continued its positive trend, bolstered by consistent polyurethane demand, while the construction sector experienced a decline, reflecting a slowdown in construction activities. Exports grew, but at a slower pace, particularly to key markets like the U.S. and European Union, as tariffs remained a concern. Overall, while demand from the automotive and paints & coatings sectors remained firm, the market experienced slower momentum in Q4. This was driven by weaker construction sector activity and slower export growth, leading to a more balanced market compared to the previous quarter.
Europe
In the fourth quarter of 2024, the Methylene Diphenyl Diisocyanate (MDI) market saw a 4% decrease compared to the previous quarter. MDI production remained steady, but low export levels and rising domestic inventory contributed to the decline. Demand for MDI in the construction sector weakened due to ongoing economic and political uncertainties, while the automotive sector showed mixed trends. Although car registrations increased initially, demand in the automotive sector slowed by December. Feedstock costs for MDI production, particularly Benzene and Aniline, decreased, which helped ease production costs. However, these lower feedstock prices did not fully offset the reduced demand. Shipping capacity issues, particularly to Northern Europe and the Mediterranean, led to lower export volumes and further increased regional inventory levels. The Polyurethane sector showed sluggish demand, especially in the construction industry, where housing activity contracted significantly. While the automotive sector had some demand growth, it was not enough to offset losses in other areas. Inflationary pressures and slower overall economic growth in the Eurozone contributed to the decline in MDI demand, marking a challenging quarter for the industry.
For the Quarter Ending September 2024
North America
In Q3 2024, the Methylene Diphenyl Diisocyanate (MDI) price trend showcased bullish movement in the North American region. Prices witnessed a notable increase, driven by a combination of factors influencing the market dynamics. Factors such as steady demand, limited supplies, and cost support from feedstock Benzene contributed to the overall bullish market sentiment, highlighting a stable and robust pricing landscape for MDI in the region.
In the middle of the third quarter, MDI production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations. The correlation in price changes demonstrated a positive sentiment, with a 4% increase noted between the first and second half of the quarter.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities in the region and a reduction in domestic stockpiles amid affected supply chain activities. The market players raised their quotations, and the overall quarter-on-quarter percentage change of 7% further solidified this growth trajectory in Q3 2024. Conclusively, the quarter-ending price for MDI Polymeric Grade DEL Texas in the USA witnessed USD 2630/MT.
APAC
In Q3 2024, the Methylene Diphenyl Diisocyanate (MDI) market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from factors, like increased feedstock Benzene 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 amid the impact of seasonal factors like monsoons and typhoons 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 feedstock Benzene and Aniline supplies and MDI production rates. MDI prices fluctuated and decreased marginally towards the end of the quarter, and the price comparison between the first and second half of the quarter showed a negative change of 1%. Simultaneously, offtakes for moderately low from the PU segment during the period. Conclusively, from the previous quarter in 2024, prices negligibly fell by 1%, indicating a downward trend, and MDI Polymeric Grade FOB Qingdao prices in China settled at USD 1970/MT at the end of quarter 3 of 2024.
Europe
Like the North American region, the Methylene Diphenyl Diisocyanate (MDI) pricing in the European market has followed an upward trajectory throughout the third quarter of 2024. The market has been influenced by stable demand from downstream industries, particularly the Polyurethane segment, despite weak production rates, with a consistent decline in the Eurozone Manufacturing PMI Index. Supply-side dynamics also played a role, as supply availability was moderately low during summer holidays creating imbalanced demand-supply dynamics, yet demand failed to match this increase, as The Eurozone's construction sector continued its downturn, significantly impacting MDI consumption. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Additionally, concerns about a potential recession in the US affecting the international crude oil market and refinery operations have led to a shortage of feedstock supplies, impacting MDI production rates. Conclusively, the quarter concluded with an MDI Polymeric Grade FD Rotterdam price at USD 2470/MT in the Netherlands, after an overall 3% increase from the last quarter's prices, indicating a consistent upward trend.
Frequently Asked Questions (FAQs):
1. What is the current price of Methylene Diphenyl Diisocyanate (MDI) in APAC?
By early July 2025, MDI prices in China stood at approximately USD 2070/MT FOB Qingdao.
2. What is the current price of Methylene Diphenyl Diisocyanate (MDI) in North America?
By early July 2025, MDI prices in the USA stood at approximately USD 2640/MT FOB Texas.
3. What is the current price of Methylene Diphenyl Diisocyanate (MDI) in Europe?
By early July 2025, MDI prices in Germany stood at approximately USD 1970/MT FD Hamburg.
4. Why did Methylene Diphenyl Diisocyanate (MDI) prices change in July 2025?
o Asia-Pacific (APAC): Prices likely edged up in early Q3 2025, supported by firm automotive PU demand, tight supply, and easing crude costs post Israel-Iran ceasefire.
o North America: Prices dipped amid weak EV and housing demand, despite firm benzene costs and ongoing trade disruptions.
o Europe: Prices inched up due to limited supply and firm feedstock costs, though logistics and regulatory hurdles persisted.
