In mid-October 2024, the US Polyurethane (PU) Resin market faced a bearish environment due to unfavourable demand and export conditions from the downstream construction industry. The decline in feedstock MDI prices further contributed to this negative market sentiment. Demand from the paints and coatings sector remained sluggish, impacted by decreasing housing starts and permits, according to data from the American Chemistry Council. The Council reported a 0.3% increase in combined business inventories (manufacturers, wholesalers, and retailers) in August, following a similar rise in July, indicating sluggish consumption and rising PU resin inventories across the US market. Housing starts fell by 0.5% in September to a seasonally adjusted annual rate of 1.354 million, keeping PU resin demand moderate. Although single-family starts rose by 2.7%—supported by gains in the Northeast and South—the overall trend was bearish, with building permits down 2.9% compared to August and 5.7% year-on-year. Exports of PU resin to Mexico also suffered as chemical railcar loadings dropped to 30,493 for the week ending October 12, contributing to price depreciation.

Exports of PU Resin to Asian and North American markets faced additional challenges due to a strike by the International Longshoremen's Association (ILA), which caused significant slowdowns at major East Coast ports. This resulted in a backlog of cargo and prompted shipping companies to redirect vessels to West Coast ports, overwhelming facilities like Los Angeles and Long Beach, and leading to increased congestion, which further threats the exports of PU Resin. Until now production of PU Resin across the US market has been largely unaffected during the present Hurricane season with operations reported smoothly with most suppliers having stocked up ample inventories in advance of the Hurricane season and continued to work of them, despite Hurricanes like Milton and Helene ploughing through the US Gulf Coast.

Overall, PU resin prices experienced a decline of approximately 1.1% in mid-October, settling at USD 1864/MT FOB Texas as of the week ending October 18. This depreciation in prices was reflective of the broader bearish market conditions fuelled by reduced demand and excess inventories. Concurrently, there was a roughly 1% decrease in feedstock MDI prices, which helped to ease production costs for PU resin across the US market.

Looking ahead, prices are expected to rise as consumption is anticipated to pick up during the festive quarter, despite the uncertain market conditions anticipated in November, including the US presidential election. Moreover, with only 1 more months left in the Hurricane season across the US, production and supply conditions of PU Resin are likely to remain uncertain.