By mid-February 2025, Polyurethane Resin prices stabilized across the domestic market despite mounting production costs driven by elevated feedstock MDI prices, which rose by approximately 1% during the opening week of February 2025. However, weak demand conditions, primarily stemming from a sluggish U.S. construction sector, limited the anticipated price gains. With most suppliers focused on clearing existing inventories rather than placing new procurement orders, demand for Polyurethane Resin remained subdued.

Further supporting price increments was the rise in secondary feedstock polyester polyol prices, following Dow's announcement of a USD 88.18/MT price hike on February 14, 2025. Despite this increase, ample Polyurethane Resin inventories across warehouses and sluggish production activity tempered the impact of rising input costs. According to the American Chemistry Council's press release dated February 14, 2025, U.S. production of major plastic resins, including Polyurethane Resin, totaled 8.8 billion pounds in December 2024, marking a 1.4% month-over-month decline. This production dip further limited supply, providing additional support to Polyurethane Resin prices.

Meanwhile, domestic demand conditions within the U.S. construction sector showed little sign of improvement. Housing starts fell sharply by 9.8% month-over-month, indicating a slowdown in new residential construction, while building permits edged up marginally by 0.1%. Existing home sales also declined by 4.9%, reflecting weaker transaction volumes compared to the previous month. The overall downturn in housing starts and home sales, coupled with minimal growth in building permits, has kept construction sector sentiment muted, further capping potential price gains in the Polyurethane Resin market.

Export conditions mirrored this sluggishness, as chemical railcar loadings, including shipments of Polyurethane Resin, declined by 6.2% to 32,246 for the week ending February 15, 2025, according to data from the Association of American Railroads. This ample market supply has largely offset Dow’s polyester polyol price hike, reducing its impact on Polyurethane Resin prices.

Looking ahead, market participants anticipate stronger demand for Polyurethane Resin in the second half of the year, particularly as restocking activity transitions to end-use consumption. Polymeric MDI, a key building block of Polyurethane Resin used in insulation, roofing, and carpet underlay, has seen demand driven primarily by restocking rather than construction activity. Despite the slow start in January, multiple price increase announcements and rising cost inputs are expected to push Polyurethane Resin prices higher in the coming months, with the industry cautiously optimistic about a rebound in demand as the year progresses.