Global MDI and TDI Price Increases: January 2025 Developments

In January 2025, major global suppliers of MDI and TDI announced price increases across the board. On January 15, Wanhua Chemical raised its prices for MDI and TDI in the ASEAN region by $200 per ton, effective immediately or as allowed by contract terms. The company emphasized that this adjustment is necessary to maintain high standards of supply chain reliability amidst rising logistics, raw materials, and energy costs, thereby strengthening long-term partnerships.

On January 10, BASF also declared a price hike for its Lupranate® TDI products in the ASEAN and South Asia regions, raising prices by $300 per ton (approximately ¥2,199 per ton). This increase is primarily driven by considerations for sustainable business development and ongoing rises in transportation, energy, and regulatory costs. Additionally, just three days prior, on January 7, BASF had already increased the prices of its Lupranate® MDI (toluene diisocyanate) MS series by $300 per ton.

As of January, Shanghai Covestro's latest TDI price stands at ¥14,100 per ton, reflecting an increase of ¥800 per ton. The TDI market is witnessing a rapid price ascent due to tight domestic supply and rising overseas market prices. Currently, prices in the East China market range from ¥13,600 to ¥13,800 per ton for Shanghai products, and ¥13,300 to ¥13,500 per ton for domestic goods, with a ¥400 per ton increase noted.

However, the domestic market faces limited supply, causing delays in order fulfillment. Reports indicate that Yantai Wanhua and Cangzhou Dahua are prioritizing export orders, which has constrained domestic shipments. Meanwhile, shipments from Fujian Wanhua, Xinjiang Jushi, and Covestro's TDI are still slow, with significant delays reported in Shanghai.

In 2024, TDI prices and profitability in China faced severe declines due to oversupply and weak downstream demand. According to BuyHuaPlast Research Institute, the highest price recorded was ¥17,200 per ton, while the lowest was ¥12,700 per ton, resulting in an annual average of ¥14,313 per ton, a 19.68% drop compared to 2023 (¥17,821 per ton).

Recent closures of overseas TDI facilities have notably reduced supply, creating gaps in demand that have allowed China to expand its export scale, leveraging its price advantages. In 2024, the average export price for TDI fell to between $1,700 and $1,800 per ton, compared to $1,900 to $2,300 per ton in 2023.

Currently, TDI prices for Chinese goods in the Southeast Asian market are between $1,700 and $1,750 per ton CIF, while South Korean sources range from $1,720 to $1,750 per ton CIF, maintaining China's competitive edge in export pricing. Notably, Shanghai Covestro plans to expand its TDI production capacity from 310,000 tons to 370,000 tons by 2025, with Fujian Wanhua's second-phase expansion project of 360,000 tons/year having completed its second public review. This indicates a future concentration of global TDI production capacity in China.