US PMDI prices decline on sufficient supply, weaker Asian pricing

US polymeric methylene diphenyl diisocyanate (PMDI) prices were assessed 5 cents/lb ($110/tonne) lower on sufficient supply and lower prices in Asian markets.

Asian markets pared some losses this week but are still down 36% compared with the 2019 high point observed in early May.

There had been some concern that trade tensions between the US and China would limit import availability. However, Chinese suppliers have so far maintained allocation levels to North America despite additional tariffs.

China is the largest MDI exporter to the US, accounting for over 70% of total US MDI imports in 2018, according to data from the ICIS Supply and Demand Database.

PMDI demand has been stable to slower, tracking larger trends within the global manufacturing sector.

MDI is consumed mainly in polyurethane foams, which account for about 80% of global consumption. Rigid foams, the largest outlet for MDI, are used mostly in construction, refrigeration, packaging and insulation. MDI is also used to make binders, elastomers, adhesives, sealants, coatings and fibres.

Major US MDI producers include BASF, Covestro, Dow and Huntsman.