Polyurethane Resin prices have shown deviations across global markets, with increases of 2.2% in Europe and 1.6% in North America in February 2025, extending into March. Conversely, prices in the Far East Asian market declined by approximately 2.5% during late February into March.

In North America, price increments for Polyurethane Resin were driven by political uncertainties regarding MDI imports from Asia. A petition by major US producers, including Dow Chemicals and BASF, led to stricter government scrutiny. Additionally, an extra 10% levy was imposed on MDI imports in late February, adding to the existing 25% tariff, increasing production costs. Polyurethane Resin production declined as overall plastics and resin output in the US fell by 6.2% in January 2025 as per the data released by American Chemistry Council, with further reductions expected in February due to curtailed run rates.

Demand for Polyurethane Resin remained weak due to a downturn in the construction sector. US housing starts fell by 10% in January 2025, and construction spending declined by 0.2%, according to the US Census Bureau. The National Association of Home Builders (NAHB) reported a drop in builder sentiment to 42 in February, the lowest in five months, as concerns about high borrowing costs persisted, thus resulting in bleak demand expectations for Polyurethane Resin during Q1 2025.

In Europe, supply curtailments and rising feedstock MDI contract prices (EUR 10–60/t) led to increased production costs. However, demand for Polyurethane Resin remained sluggish, with some converters seeing slight order volume increases but overall weak downstream construction activity. Limited price increases were passed to customers.

Across the Far East Asian market, low demand and improvement in supply conditions eventually led to prices of Polyurethane Resin witnessing a bearish market condition during late February 2025 and extending into March 2025.  Polyurethane Resin production fell from 14,111 to 13,689 tonnes in January 2025 representing a depreciation of 3%, while shipments declined from 13,340 to 13,165 tonnes representing a decline of 1.3%, consequently leading to inventory accumulation in warehouses thus reinforcing the bearish market which already prevailed across the market, as per Japan’s Ministry of Economy, Trade, and Industry.

Feedstock MDI supply improved with Tosoh Chemicals having returned to production by restarting its MDI units in Japan in late February 2025 after maintenance shutdowns. However, demand conditions for Polyurethane Resin continued to remain unfavorable, with Japan’s housing starts falling for the ninth consecutive month in January, declining by 4.6% year-on-year, a steeper drop than December’s 2.5% fall, according to the Ministry of Land, Infrastructure, Transport, and Tourism.

As per anticipations, global Polyurethane Resin prices are expected to rise further in the upcoming weeks. European markets face ongoing supply constraints, while North America grapples with political uncertainties. Across Asia, major producer Wanhua Chemicals announced a USD 100/ton increase in MDI prices in ASEAN, effective February 28, 2025, following a previous USD 200/ton hike in January 2025. These increases aim to counter rising transport and production costs. Demand is projected to improve as the spring season boosts construction sector activity, potentially leading to further price increases in the coming weeks.