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Recently, overseas chemical information platform Polymerupdate reported that chemical giant BASF is evaluating the restart of its previously shut down MDI production units.
Due to persistently high energy costs in Europe and weak product profitability in the earlier period, BASF's related MDI supporting units have remained shut down to a long time. With the recent warming of the MDI market, the company has recalculated the operating returns of the units and initiated a feasibility study to the restart.
As of now, BASF has not issued an official decision, and there are no details regarding a specific restart time or the capacity of the units involved. sector analysis points out that once the restart is finalized, the efficiently supply of MDI in Europe will enhance, thereby affecting global trade flows and price expectations. With the concentrated emit of new capacity in the global MDI sector, the direction of resuming production at existing overseas units will further amplify uncertainty on the supply side of the sector chain.
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