For the Quarter Ending June 2025
North America
• The Polyurethane Resin spot price in North America declined by 8.47% quarter-over-quarter in Q2 2025, reflected in a softer Price Index.
• Low demand conditions from the primary construction sector continued to remain the prime factor for the downward pull on the prices
• Structural demand remained with procurements activities being largely as per need basis post global tariff fallout
• Export demand to the primary importing Mexican and Canadian markets remained largely low
• Production costs eased as evidenced by a fall of 2.2% in the prices of feedstock MDI quarter-over-quarter in Q2 2025
• Suppliers were largely reported to have been offering backlogged inventories at lower prices
Why did the price of Polyurethane Resin change in July 2025 in the US?
• In July 2025, the Price Index of Polyurethane Resin was reported to have been stable due to subdued activity in the construction sector leading to cautious sentiment,
• Suppliers were reported to have been largely moving backlogged inventories at existing quotations amidst weaker offtakes
• Producers were reported to have maintained disciplined run rates to prevent supply overhang across the market
• A handful of buyers were reported to have been stockpiling inventories to remain covered by the potential disruptions from the Hurricane season.
Europe
• The Polyurethane Resin spot price in Europe declined by 9.81% quarter-over-quarter in Q2 2025, reflected in a softer Price Index.
• Low demand conditions from the primary construction sector continued to remain the prime factor for the downward pull on the prices
• Production costs eased as evidenced by a fall of 17% in the prices of feedstock MDI quarter-over-quarter in Q2 2025
• Competitively priced inventories originating from the Asian market continued to undercut domestic prices thus leading to overall price decline
• Suppliers continued to hold ample inventories, and backlogged inventories were moved at lower prices, despite attempted price hikes from multiple producers and attempts to lengthen the market situation by keeping production rates curtailed.
• Amidst ample supplies and no significant disruptions in the logistical systems buyer acceptance of higher prices remained low throughout the quarter
• Export conditions remained largely unfavourable with port congestions being witnessed across the Northwestern European ports and the Euro appreciation which resulted in European origin inventories uncompetitive in the global market.
Why did the price of Polyurethane Resin change in July 2025 across Europe?
• In July 2025, the Price Index of Polyurethane Resin was reported to have been stable due to subdued activity in the construction sector leading to cautious sentiment.
• European producers were reported to have kept existing quotations unchanged during July 2025 in effort to remain competitive against the Asian origin inventories
• Producers were reported to production rates curtailed amidst the seasonal summer holidays witnessed during mid-July 2025
• Weaker offtakes reported from the primary downstream furniture and bedding sector
APAC
• Polyurethane Resin spot prices in the APAC region declined by 2.6% quarter-over-quarter in Q2 2025, as reflected in a softer Price Index.
• Production costs eased, supported by a 6.6% drop in feedstock MDI prices over the same period.
• Subdued demand from the construction sector—the primary downstream consumer—remained the key factor exerting downward pressure on prices.
• In an effort to remain competitive, several producers and suppliers were reported to have reduced prices and offloaded inventories via exports, despite maintaining curtailed production rates.
• Delayed Outbound inventories amidst port congestion across major Asian ports kept bearish pressure on the export prices
• Following the global tariff fallout, multiple producers were noted to have redirected cargoes from North America to European and Southeast Asian markets, leading to ample regional supply conditions.
• Weaker offtakes from overseas buyers remained the dominant driver behind lower export prices.
Why did the price of Polyurethane Resin change in July 2025 across APAC?
• In July 2025, the Price Index of Polyurethane Resin was reported to have declined due to low seasonal demand from the construction sector during the monsoon season
• Suppliers were reported to have been holding inventories across the warehouses
• Weaker offtakes reported to have been noted from the primary buyers based across the Southeast Asian market
• Asian producers were reported to have been actively lowering their quotations in July 2025 in order to remain competitive and induce buying activity
For the Quarter Ending March 2025
North America
During Q1 2025, U.S. Polyurethane Resin prices rose by approximately 6%, driven by tight supplies, logistics issues, and rising feedstock costs. In January, prices increased due to a 1% rise in TDI prices and cold weather disruptions impacting logistics. U.S. producers maintained firm pricing, while downstream demand from construction remained moderate. Trade uncertainties and a potential strike also added to market tensions.
In February, prices continued to rise, influenced by a 0.8% increase in MDI prices and low inventory availability. Chemical railcar loadings rose by 15.9%, improving circulation, though tariff uncertainty on Chinese MDI imports remained a key concern. March saw a 1.1% MDI price hike amid new U.S. tariffs and an anti-dumping probe into Chinese MDI, maintaining upward price pressure.
A major MDI producer also conducted staggered maintenance. Despite balanced contract prices (95–103¢/lb), overall demand remained sluggish, with the construction sector showing persistent weakness. Builder sentiment fell to a five-month low, and the Federal Reserve's stance on borrowing costs further dampened market outlooks. Overall, pricing stayed firm while demand conditions remained fragile.
Europe
The European Polyurethane Resin market experienced a 6.1% price rise in Q1 2025, driven by feedstock cost increases and reduced production, though demand weakness and limited arbitrage dampened gains. In January, BASF raised prices by EUR 200/ton for PU Resin and its feedstocks, while low inventory levels and reduced run rates supported price hikes. However, weak demand from the construction and automotive sectors, holiday-related slowdowns, and port congestion—particularly in Hamburg—constrained market activity. In February, Huntsman and BorsodChem raised prices due to escalating energy, raw material, and logistics costs. Production cuts continued, and Dow Chemical began reviewing its European PU operations amid high energy costs. Yard congestion in Hamburg further restricted exports. Demand remained poor, especially in Germany’s construction sector, where reduced tenders, high borrowing costs, and economic weakness led to sharp order declines and ongoing employment reductions. In March, MDI prices rose by 1.2%, supporting further PU Resin price increases, while BASF’s closure of a key TDI plant curtailed output. Despite a slight uptick in orders, overall demand remained weak, with building permits in Germany down 17%, continuing to pressure the market.
APAC
The APAC Polyurethane Resin market rose by around 2% in Q1 2025, driven by price hikes and maintenance-related supply constraints, despite sluggish demand. In January, Japan’s production increased slightly, ensuring stable supply. However, subdued market activity in China due to pre-Lunar New Year procurement and weak U.S. demand kept trade muted. Stable feedstock prices helped contain cost pressures, but domestic demand in Japan weakened as housing starts fell for the seventh straight month. In February, Wanhua and Huntsman announced price hikes for MDI and TDI, raising production costs across Asia. Japanese output declined 6.3% month-on-month, with rising inventories limiting price growth. Several Asian MDI plants, including those operated by Tosoh, Kumho, and BASF, underwent maintenance shutdowns, tightening supply further. However, Japan’s construction sector continued to struggle, with housing starts down 2.5% year-on-year, and U.S. trade uncertainty also weighed on export demand. By March, output and inventories in Japan declined, but improved MDI supply led to cost easing. MDI prices fell 2%, pressuring PU Resin prices. Domestic demand stayed weak, housing starts dropped for a ninth consecutive month, and exports declined 26%, keeping the market oversupplied.
For the Quarter Ending December 2024
North America
The North American Polyurethane Resin market continued to experience a bearish market situation, with prices falling by approximately 8% during the last quarter of 2024 despite challenging conditions due to seasonal hurricanes. The decline in prices was primarily driven by the fact that U.S. suppliers had built ample inventories during October 2024, which they continued to utilize. Demand conditions in the domestic market remained unfavorable, with construction spending witnessing declines throughout the quarter.
Homebuilding confidence remained low and below the 50-threshold, leading to slow consumption of the product. Export conditions also remained unfavorable due to the strike between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), which caused a backlog of vessels and resulted in inventory accumulation across ports.
Towards the end of 2024, destocking activities gathered momentum, leading U.S. suppliers to liquidate existing inventories. The overall U.S. polyurethane market was reported to be driven by ample inventories, with disciplined procurement sentiment and no significant disruptions observed as suppliers remained under pressure to liquidate stocks amid fears of inventory devaluation and year-end tax repercussions, contributing to the bearish momentum of the market.
Europe
The European Polyurethane Resin market experienced predominantly bearish conditions during the last quarter of 2024, despite improvements in supply conditions. With the majority of producers returning to production after the summer holidays, supply conditions gradually improved. However, demand from the construction sector remained low, leading to continued weak off-take and resulting in a bearish market. In the middle of the quarter, suppliers focused on liquidating existing inventories, with extended holiday breaks contributing to lower market activity. Export conditions were largely unfavorable, as arbitrage opportunities in and out of Europe remained mostly closed, and inland trading faced disruptions. Towards the end of November 2024, some producers made quiet attempts to raise prices, but these efforts were largely unsuccessful due to ample supplies. As December progressed, with liquidation activities underway, producers attempted to stabilize the market by reducing production rates. However, the overall market sentiment remained weak, dominated by slow demand and inventory liquidation.
APAC
The Asian Polyurethane Resin market experienced a depreciation of approximately 2% during the last quarter of 2024, driven by unfavorable demand conditions from the domestic construction sector. Despite rising feedstock TDI prices, particularly following a price revision by major producers like Toray Lycra (which raised prices by 30-50 yen per kilogram for shipments after November 1st, 2024), the market failed to exhibit bullish sentiment. In Japan, inventories of Polyurethane Foam decreased slightly from 4,047 thousand tonnes to 3,994 thousand tonnes in October 2024, as reported by the Japanese Ministry of Trade and Industry. Meanwhile, production of Polyurethane Resin rose by 10.3%, from 14,442 tonnes to 15,942 tonnes, but this increase in production added downward pressure on the market. Shipments also grew by 10.8%, from 13,608 thousand tonnes to 15,081 thousand tonnes in October. Despite this, overall market sentiment remained bearish, with subdued activity exacerbated by the U.S. market’s holiday shutdown, which hindered inventory flow to Japan. Stability in Polyurethane Resin prices was supported by stable feedstock TDI prices, and moderate inventory levels across Japanese warehouses helped maintain mostly stable quotations during the period.
For the Quarter Ending September 2024
North America
In Q3 2024, the Polyurethane (PU) Resin market in North America experienced rising prices, with a notable 2% increase from the previous quarter. The USA saw the most significant changes, primarily due to supply constraints related to feedstock MDI and TDI. Logistical challenges, including weather-related disruptions, contributed to higher transportation costs, further influencing pricing.
Although no plant shutdowns were reported, expectations of reduced PU Resin production persisted, especially following disruptions caused by Hurricane Francine. Delivery lead times also increased due to ongoing logistical challenges. Purchasing activity slowed, marking the sharpest decline of the year-to-date, as firms worked to reduce inventories in response to falling new orders. This resulted in a sixth consecutive monthly drop in input stocks, partly driven by efforts to improve cash flow amid sluggish demand. Demand in the construction sector remained moderate, affected by fluctuations in residential and private spending. Overall, pricing showed a steady increase throughout the quarter, with a 5% difference between the first and second halves.
The quarter-ending price for Polyurethane Resin Rheology Modifier in the USA was USD 1,895/MT FOB Houston, reflecting a consistent upward trend. Market conditions indicated a positive sentiment, suggesting a bullish outlook.
Europe
In Q3 2024, the European Polyurethane (PU) Resin market experienced fluctuations, with little improvement during the summer holiday season and the subsequent post-holiday period. Most suppliers adopted a cautious approach, refraining from active bidding in the market. Smaller producers faced intense price competition, prompting some to reduce production or even consider plant closures. Despite these challenges, MDI prices remained stable. The summer holidays further constrained production activities, resulting in minimal movement in the PU resin market. Most activity centred around restocking in anticipation of future demand, although this demand has yet to materialize. Dow's MDI plants in Europe continued to prioritize allocations for their North American facility, which was affected by a hurricane in July. Additionally, Covestro's MDI plant in Europe may face maintenance issues in September or October, coinciding with the holiday season. Some smaller plants have been revising contracts due to a lack of robust activity in the construction sector. As lead times for delivery of construction inputs continue to shorten, prices are expected to decline, especially with current stocks remaining high in warehouses. In Germany, the market saw the most significant price changes in the region, driven by deterioration of economic conditions and manufacturing sector performance. While the overall European market experienced a 5% price decrease compared to the same quarter last year, Germany recorded a smaller decline of 3%. A 1% price increase between the first and second halves of the quarter further highlights a strengthening pricing environment. The quarter-ending price for Polyurethane Resin flexible foam in Hamburg was USD 2,582/MT, reflecting the upward trend observed throughout Q3 2024.
APAC
In Q3 2024, the Polyurethane (PU) Resin market in the Asia-Pacific (APAC) region demonstrated stability, primarily due to consistent demand from downstream industries, especially construction and manufacturing. Seasonal fluctuations and logistical challenges, including weather disruptions and port congestion, contributed to maintaining stable prices. Supplies were moderate, as Mitsui Chemicals reduced the run rates at its TDI manufacturing plant in Omuta, with a capacity of 120,000 MT/year, since June 2024. This reduction led to lower TDI production in Japan, which in turn affected PU Resin production, resulting in moderate supply levels in the Japanese market. With most suppliers reporting sufficient inventories, there was little incentive to procure additional supplies, and trade discuss\ions remained limited due to unfavourable export conditions. Some cargoes were sent to China, where the National Holiday prompted a slight increase in procurement activity. In the domestic market, demand for PU resin was moderate, significantly impacted by Japan's housing sector, which experienced a 5.1% year-on-year decline in housing starts for the fourth consecutive month in August. This downturn reduced demand from the paints and coatings industries, with contractions observed across all housing categories. In Japan, the market saw a notable 17% decrease in prices compared to the same quarter last year and a 4% decrease from the previous quarter in 2024. Despite these fluctuations, the overall pricing trend remained stable, with no change between the first and second halves of the quarter. The quarter-ending price for flexible Polyurethane foam in Tokyo was USD 4,390/MT, reflecting a consistent pricing environment throughout Q3 2024.
FAQ’s
1. What factors influence the price of Polyurethane Resin?
Answer: Polyurethane Resin prices are primarily driven by feedstock costs (such as MDI and polyols), downstream demand (especially from construction, automotive, and furniture sectors), supply availability, logistics costs, and geopolitical or trade policy changes.
2. Why did Polyurethane Resin prices decline in Q2 2025 in the APAC region?
Answer: Prices declined due to a combination of weak demand from the construction sector, falling feedstock MDI costs ,and competitive price reductions by suppliers who resorted to exports amid ample regional supply.
3. How do global trade dynamics affect Polyurethane Resin prices?
Answer: Tariffs, trade disputes, and shifting export routes impact supply-demand balances. In Q2 2025, for instance, producers redirected cargoes from North America to Europe and Southeast Asia, contributing to oversupply and price pressure in those regions.
4. Are Polyurethane Resin prices expected to rebound in the near term?
Answer: Recovery depends on resurgence in construction and manufacturing activities, stabilization of feedstock prices, and supply rationalization. As of now, prices remain under pressure due to persistently soft demand and ample inventories.
5. How do producers respond to declining Polyurethane Resin prices?
Answer: To remain viable, producers often curtail production, offer discounts, or redirect shipments to alternative markets. Some also seek to optimize raw material sourcing and lower operational costs to maintain margins amid price declines.
