BASF increases prices for MDI in ASEAN countries

German chemical giant BASF has announced a price increase for its Lupranate® MDI (methylene diphenyl diisocyanate) products in member countries of the Association of Southeast Asian Nations (ASEAN). The company will raise prices by USD 200 per metric ton, effective immediately or as contracts permit. According to the company, the adjustment is intended to address sustained increases in raw material and production costs.

MDI is a key raw material used in the production of polyurethane materials and is widely applied in building insulation, refrigerator and freezer insulation panels, automotive interiors, furniture foams, and industrial equipment. As a core chemical in the polyurethane value chain, its pricing is typically influenced by feedstock costs, energy prices, and overall supply conditions.

The company stated that the price increase is mainly driven by persistently high upstream raw material costs, particularly benzene and related chemical feedstocks. In addition, rising energy expenses, transportation costs, and ongoing regional supply chain pressures have further impacted overall production costs. BASF emphasized that the adjustment is necessary to ensure long-term supply reliability and maintain operational sustainability.

Public information indicates that this is not the first time the company has implemented a price increase in the region. In early 2025, BASF also announced price hikes for MDI products in parts of Asia, reflecting the continued challenges faced by the global chemical industry in terms of feedstock volatility, supply-demand balance, and operating expenses.

Industry observers note that the global MDI market has experienced cyclical fluctuations in recent years, with plant maintenance schedules, regional supply-demand shifts, and feedstock price movements all contributing to pricing dynamics. Given that Southeast Asia has relatively limited local MDI production capacity and relies to some extent on international suppliers, pricing adjustments by major global producers can have a direct impact on the regional market.

As one of the world’s leading chemical companies, BASF operates an extensive global production and supply network. The latest price adjustment in Southeast Asia underscores the broader trend of cost pass-through across the global chemical industry amid sustained pressure on input costs.