At the beginning of this month, the prices of Methylene Diisocyanate (MDI) are declining in the Indian market, which has been continuously slackening for the past few weeks. As per the Chemanalyst data, in the first week of this month, the values of Methylene Diphenyl Diisocyanate declined by almost 4% and showed a decrement of around INR 7500 in the previous week’s values, and the ex-Mumbai price of Methylene Diphenyl Diisocyanate got settled at INR 201180/MT in the Indian market. However, feed Benzene and upstream Naphtha prices are seen surging in the market, which is escalating the production costs of Methylene Diphenyl Diisocyanate materials.

The prime reason for the fall in Methylene Diphenyl Diisocyanate prices is the falling demand for Polyurethane products. Polyurethane are used in making foams for furniture and other household goods. Summer is approaching, and the demand for Polyurethane is declining in its end-user industries. Methylene Diphenyl Diisocyanate also finds its application in the construction sector, and currently, the activities in the construction sector are firm.

As China is the leading exporter of Methylene Diphenyl Diisocyanate in India, due to the affected transportation activities from China, Methylene Diphenyl Diisocyanate's trade activities and supplies are hampered in the Indian market due to clogging of containers at their ports and frequent lockdowns. Also, the trade prices of Methylene Diphenyl Diisocyanate materials in India are declining due to available stock inventories of materials in China, which is declining its values in the Chinese market. Amid the hollow demand for materials and the disturbed supplies, seasonal offtakes of materials are seen from the Indian market.

Chemanalyst experts say, “Methylene Diphenyl Diisocyanate prices may decline further in the coming weeks due to its stagnant demand from consumers in the household sector. However, the manufacturing costs of materials are anticipated to rise due to increasing upstream prices. Increasing fuel prices and freight costs will affect the overall values of Methylene Diphenyl Diisocyanate in the domestic Indian market.”