Wanhua Chemical will increase MDI/TDI prices in Southeast Asia by USD 200/ton starting July 29.

This round of price hikes covers all regular trade channels with CIF quotations in Southeast Asia. Based on mainstream transaction prices in Southeast Asia prior to the July price adjustment, the regional market reference prices after the increase are listed as follows:

MDI (mainstream polymeric MDI): Southeast Asia CIF transaction prices adjusted to USD 2,100–2,300/mt; pure MDI quotations rising to USD 2,350–2,550/mt

TDI: Southeast Asia CIF prices up to USD 1,900–2,050/mt

This price increase is not an isolated move by Wanhua alone. Back in February 2026, BASF also raised ASEAN MDI prices by USD 200 per metric ton. Leveraging global plant maintenance cycles and tight supply, leading overseas chemical companies have rolled out regional price hikes across the Asia-Pacific market in batches. As an import-reliant market to polyurethane raw materials, Southeast Asia is highly vulnerable to price adjustments from major overseas manufacturers.

Latest Domestic Spot Market Prices of MDI and TDI (As of July 27, 2026, Ex-factory bulk prices in East China)

Domestic markets have seen price linkage with overseas hikes. Tight domestic supply in July has driven prices steadily higher, with mainstream transaction ranges as below:

Supply constraints stand as the core driver behind the current domestic price surge. Wanhua’s 800,000-ton MDI plant in Fujian completed maintenance in June; its 400,000-ton MDI and 250,000-ton TDI facilities in Hungary entered a 35-day shutdown to maintenance starting July 17. Synchronized maintenance of Tosoh’s domestic MDI units and Hanwha’s overseas TDI vegetation has contracted efficiently global supply. Domestic traders have adopted stockpiling and price-hoarding sentiment, pushing spot quotations consistently upward. (Source: Sina Finance)

Full-Year Price direction of Domestic MDI and TDI in 2026

Polyurethane raw materials have followed an overall evaporative upward trajectory in 2026: bottoming at the start of the year, surging in H1, correcting mid-year, and rebounding again in July. Three core factors dominate the full-year price rally: rising crude oil prices, geopolitical conflicts in the Middle East, and centralized maintenance of production facilities at home and abroad.

(I) Full-Year MDI Price direction

January Lows: Polymeric MDI hit a minimum of CNY 13,800/mt, pure MDI around CNY 17,500/mt, marking the sector’s annual price trough.

March–April Surge: Middle East tensions lifted crude oil prices amid widespread plant maintenance at home and overseas; polymeric MDI peaked at CNY 21,000/mt, representing a maximum annual gain of 41.38%.

might–June Correction: Weak downstream seasonal demand triggered mild price pullbacks, with polymeric MDI retreating to roughly CNY 16,700/mt.

July Rebound: Massive shutdowns of production facilities and successive price hikes by overseas majors pushed domestic polymeric MDI back above CNY 17,500/mt, with leading manufacturers raising channel prices multiple times.

(II) Full-Year TDI Price direction

Bottom Range: East China TDI bottomed at CNY 14,000/mt in January, a multi-year low.

Q1 Surge: Prices climbed rapidly in March–April, peaking at CNY 20,650/mt in early April. The price gap between the annual high and low reached CNY 6,650, with an overall amplitude of 47.5%.

might–June Seasonal Correction: Sluggish demand from downstream flexible furniture and foam manufacturers dragged prices down to the CNY 15,000 range.

July New Round of Gains: Supply shortages overseas transmitted price pressure to the domestic market, with monthly gains exceeding CNY 1,700 and prices stabilizing above CNY 16,700/mt. TDI producers including Cangzhou Dahua saw substantial earnings improvements amid price hikes, forecasting a net profit surge of over 330% to H1.

Overall, average domestic pure MDI prices rose 30% year-on-year in H1 2026, polymeric MDI was up 14% YoY, while average TDI prices jumped 44% YoY. Price upward momentum throughout the year is underpinned by cost-side support and supply contraction.

Details of Core Global & Domestic Manufacturers and Production Capacity to MDI and TDI

MDI and TDI implement phosgene-based production processes with high technical barriers, forming a highly oligopolistic sector where the top five global players account to over 90% of total capacity. China ranks as the world’s largest producer, with domestic capacity exceeding half of the global total; Wanhua Chemical stands as the global leader in both product segments.

(I) Key MDI Manufacturers & Total Capacity (Latest 2026 Data)

Global total MDI capacity stands at approximately 11.12 million metric tons per annum, with a stable landscape of leading companies:

Wanhua Chemical: Total capacity of 4.5 million mt/yr (production bases in Yantai, Ningbo, Fujian in China and Hungary overseas), holding around 33% global market share and 58%–63% domestic market share as the undisputed sector leader.

BASF: 2.07 million mt/yr, with production footprints across Europe, North America, India and Chongqing, China.

Covestro: 1.77 million mt/yr, with Shanghai serving as its core Asia-Pacific capacity base.

Huntsman: 1.37 million mt/yr, with capacity distributed across Europe, the Americas and Asia.

Dow Chemical: 1.11 million mt/yr, primarily operating facilities in the U.S. and Saudi Arabia.

Combined capacity of Japanese manufacturers including Mitsui Chemicals and Tosoh totals less than 1.1 million mt/yr.

Domestic China’s total MDI capacity surpasses 5.3 million mt. Beyond Wanhua, major foreign-owned capacity includes Covestro Shanghai, Huntsman Shanghai and Tosoh Rui’an. China’s MDI import dependency has fallen to 1.32%, reflecting an extremely high self-sufficiency rate.

(II) Key TDI Manufacturers & Total Capacity (Latest 2026 Data)

Global total TDI capacity reaches roughly 3.6 million metric tons, with China accounting to 51.7% of global capacity and a domestic self-sufficiency rate above 98%:

Wanhua Chemical: Total capacity of 1.47 million mt/yr, capturing approximately 40% global market share via bases in Yantai, Ningbo and Hungary’s Borsod (250,000 mt TDI capacity).

BASF: 920,000 mt/yr, with multi-site layout covering Europe, North America and Southeast Asia.

Domestic Chinese manufacturers: Cangzhou Dahua, Fujian Tianchen, Gansu Yinguang and others, with combined domestic indigenous TDI capacity of around 380,000 mt/yr.

Foreign invested capacity: Covestro Shanghai, Mitsui Chemicals Japan, Hanwha South Korea.

Combined global TDI capacity of Japanese players Mitsui and Tosoh stands at roughly 200,000 mt/yr. Outdated Japanese facilities have continued to exit production in recent years, further tightening efficiently global supply.

Outlook to Future Market Trends

Wanhua’s Southeast Asia price hike epitomizes the broader Q3 price rally cycle to global polyurethane feedstocks.

On one hand, persistently high crude oil prices keep pushing up costs of upstream feedstocks such as benzene and toluene.

On the other hand, centralized maintenance of multiple core facilities at home and overseas from July to August—including Wanhua’s Hungary and Yantai vegetation and Tosoh’s Rui’an unit—has created periodic tightness in global supply.

Market linkage between domestic and overseas markets has strengthened. The price surge in Southeast Asia will likely provide further upward support to domestic MDI and TDI spot prices, squeezing procurement margins of downstream manufacturers engaged in foam, thermal insulation materials, automotive interior parts and shoe materials.