Wanhua Chemical raises overseas MDI prices for the second time; domestic and international giants hike prices in unison

This round of successive price increases by Wanhua Chemical covers key overseas markets including Southeast Asia, the Middle East, Africa, and Turkey. Market analysis indicates that ongoing geopolitical conflicts in the Middle East continue to disrupt international crude oil and chemical logistics, pushing up raw material procurement and ocean freight costs. Meanwhile, multiple global polyurethane vegetation have entered maintenance cycles, tightening spot supply in overseas regions, which has have become a significant driver to leading companies to collectively raise export prices.

Domestic and International Giants Move in Tandem; Polyurethane Raw Materials Experience a Wave of Price Hikes

Wanhua Chemical is not the only company adjusting prices this round. Last week, BASF and Huntsman successively issued announcements to MDI and TDI price increases, creating a synchronized atmosphere of price support across the global polyurethane sector.

In overseas markets, Huntsman implemented multiple rounds of price increases by region: starting July 27, prices to MDI and polyurethane systems in India and the Indian subcontinent were raised by $300/ton (approximately RMB 2,020/ton); simultaneously, it was confirmed that starting August 1, 2026, prices to all MDI items in Europe, Africa, and the Middle East will increase by €250/ton (approximately RMB 1,930/ton), with prolonged cooperative customers able to execute the price adjustment according to contract agreements.

Signals of price increases in the domestic market are also continuously being released. Shanghai Covestro quoted its latest aggregated MDI distribution channel price at RMB 22,300/ton this week, with a terminal fixed price of RMB 22,500/ton, representing a week-on-week increase of RMB 300/ton. Shanghai BASF set its August TDI list price at RMB 19,000/ton, an increase of RMB 1,000/ton compared to the previous month.

From the perspective of the sector landscape, global MDI capacity is highly concentrated, with leading companies such as Wanhua Chemical, Covestro, BASF, and Huntsman occupying the vast majority of capacity. Unified price adjustments by these leaders easily create price resonance, continuously bolstering market expectations to price increases.

Double Support from Costs and Supply; Domestic MDI Spot Prices Steadily Move Upward

This round of price increases along the sector chain has clear fundamental support. On the cost side, high-level oscillation in international oil prices has driven up the prices of upstream basic chemical raw materials such as pure benzene and toluene, continuously lifting the production costs of MDI and TDI. Regarding logistics, the obstruction of some sea shipping channels, extended ocean freight cycles, and rising freight rates have further increased operational pressure on companies.

On the supply side, multiple overseas manufacturers have planned plant maintenance to the third quarter, leading to a contraction in goods supply in overseas regions. Overseas buyers are seeking Chinese goods to fill the gap, keeping domestic MDI export orders relatively stable. As the domestic market gradually enters the traditional peak demand season, operating rates in downstream industries such as refrigeration cold chains, construction insulation, and adhesives are warming up, and the willingness to market restocking has recovered, leading to continuous improvement in the supply-demand stability.

Downstream Pressure Emerges; Cost Transmission Pressure Concentrates Upstream

The continuous rise in raw material prices is constantly rising the cost pressure on downstream polyurethane manufacturing companies. At this stage, upstream chemical giants have strong bargaining power, and price increase instructions are implemented smoothly, however the market to downstream items is fiercely competitive, creating resistance to passing costs downward.

sector insiders indicate that in the short term, under the dual factors of cost support and tightened overseas supply, MDI and TDI prices are greater likely to rise than fall. Moving forward, it is necessary to continuously track the progress of overseas plant maintenance, fluctuations in international energy prices, and the strength of recovery in downstream terminal demand. If the downstream sector continues to be unable to digest raw material increases, the momentum to market rises might gradually weaken in the later period.