The Hexamethylene Diisocyanate (HDI) prices increased in the European region during March 2025. HDI production rates remained stable in the region with moderate availability of feedstock supplies. Simultaneously, supply rates were affected by supply chain disruptions, including port congestion, strikes, and U.S. tariffs. Concurrently, strong demand from the downstream polyurethane sector, especially in automotive and construction, increased HDI consumption. As inventory levels declined, market players raised quotations in response to the tightening supply-demand balance.

In March 2025, the HDI production rates were stable in the European region due to moderate feedstock availability amid limited supplies. Concurrently, HDI supplies were low to the buyers due to disruptions in supply chain activities. Trading activities in Europe faced challenges due to external trade tensions and operational issues at key ports. U.S. tariffs on European goods created uncertainty, while congestion and delays impacted ports like Rotterdam, Bremerhaven, and Antwerp. Southern European ports, including Port Said and Tangier, experienced increased yard density.

Additionally, strikes across French ports, including key hubs such as Marseille Fos and Le Havre, impacted internal trade in the European region, leading to delays in container handling and land transport. These disruptions led to adjustments in vessel schedules and operational reviews to maintain supply chain efficiency. As a result, shipping companies had to reroute vessels around the Cape of Good Hope and through other Atlantic and Mediterranean ports, which led to an increase in shipping duration.

At the same time, the demand for HDI in the downstream polyurethane industry showed a bullish outlook during March 2025, supported by positive developments in the automotive and construction sectors. Despite Tesla’s decline, strong EV sales growth from BYD and the EU’s Action Plan promoting innovation in battery and vehicle technologies are expected to boost polyurethane use in lightweight and interior materials, which raised HDI demand to produce PU foam in the Polyurethane sector. In construction, while overall eurozone activity contracted, the slowdown eased, with Italy seeing notable growth and supply chains improving. These trends signal a growing demand for HDI-based PU materials in insulation, sealants, and energy-efficient building solutions.

The HDI prices are expected to rise further in the upcoming weeks due to steady offtakes from the downstream polyurethane industries during Q2. Simultaneously, the anticipated increases in input prices due to high demand might raise production costs. Additionally, higher freight costs amid an increase in shipping activities during summer and favourable trade conditions would further contribute to the HDI price hike. Inventory levels are expected to decline due to low supply rates and robust demand during mid-quarter and market players might raise their quotations amid a competitive market.