In September 2023, the Hexamethylene Diisocyanate price trend remained persistent, showcasing a bearish movement. The previous inventories of Hexamethylene Diisocyanate were adequately available in the regional market amid no significant improvement in offtakes in the past few weeks.

As per the sources, the Eurozone manufacturing sector Purchasing Manager's Index dropped marginally and remained below 50 during September 2023, indicating some contractions in the manufacturing sector activities. The summer holidays in the region cause a decline in manufacturing and purchasing activities. The Hexamethylene Diisocyanate consumption rates remained low from the domestic buyers amid the decline in retail sector sales by 0.8% during the previous month. Simultaneously, a drop in electric vehicle sales was seen during September 2023. It negatively impacted the downstream Polyurethane orders from the Automotive sector. It improved inventory levels amid the moderate availability of Hexamethylene Diisocyanate supplies in the regional market.

Meanwhile, the cost support on upstream Butadiene was firm during the past month, and upstream cost support remained a high surge in upstream Crude Oil prices due to weak availability of supplies amid upstream Crude Oil production cuts by global refineries. It raised the cost support on Hexamethylene Diisocyanate production costs.

Simultaneously, Hexamethylene Diisocyanate upstream Ammonia orders remained firm from the fertilizer manufacturers amid the stressed availability of supplies. Buyers started the restocking practices for the planting season in the agriculture sector. It negatively impacted the production rates of Hexamethylene Diisocyanate during the month.

According to the ChemAnalyst data sources, the Hexamethylene Diisocyanate prices witnessed a marginal reduction of 2.5% during the past month and hovered at USD 5000/MT at the end of September 2023. The decline was nominal due to a rise in production costs and affliction in production rates amid rising inflation in the Eurozone.

Sources say that Russia and Saudi Arabia will further cut their Crude Oil production rates by 1 million barrels per day and export rates to 300,000 barrels per day during Quarter 4 of 2023. It will impact the production rates of upstream Butadiene.

As per the assessment, manufacturing activities will increase in the European region with the beginning of the final quarter of 2023. The consumption rates of Polyurethane elastomers are expected to improve in the manufacturing sector to fabricate PU sole footwear and furniture foam. It will escalate the demand for Hexamethylene Diisocyanate, and the market will improve during the first half of the year's fourth quarter. Furthermore, the upstream Natural Gas prices will be firm during winter and will raise the upstream cost support on Hexamethylene Diisocyanate and its market prices.