Polyurethane Industry Update – as of August 3, 2026
The current narrative across the global polyurethane (PU) sector can be summarized by four key threads: concerted price hikes by global oligopolies upstream, a structural capacity shift toward Asia and the Middle East, and downstream demand pivoting toward TPU, new energy, and wind power applications.
1. MDI/TDI See Concentrated Price Hikes; Monthly Gains Exceed 10%
From late July into early August, Wanhua, BASF, and Huntsman implemented synchronized global price adjustments:
China domestic list prices: Huntsman Shanghai set its August polymeric MDI list price at RMB 19,500/ton (+RMB 1,500); BASF Shanghai raised its August TDI list price to RMB 19,000/ton (+RMB 1,000).
Spot market: As of July 31, the benchmark price for polymeric MDI stood at approximately RMB 17,866/ton, up 10.29% MoM and roughly 15.9% YoY. Soft foam polyether in Shandong traded at RMB 9,400–9,600/ton, tracking feedstock costs higher.
Overseas pricing: Wanhua lifted MDI/TDI prices in Southeast Asia by USD 200/ton; Huntsman raised MDI prices in Europe, Africa, and the Middle East by EUR 250/ton effective August 1, with an additional USD 300/ton hike for India and the broader subcontinent.
Downstream pass-through: Leading TPU producer Miracll Chemicals announced a blanket RMB 1,000/ton increase for all TPU grades; adhesive manufacturers followed with 3%–5% hikes.
Drivers: Elevated logistics and energy costs linked to Middle East geopolitical tensions; concentrated global plant turnarounds in July–August (including Wanhua's 400 kt/a MDI and 250 kt/a TDI units in Hungary, Yantai's 1.1 Mt/a MDI line, NPU's Ruian facility, and BASF's U.S. operations); and ongoing rationalization of aging overseas capacity.
2. Capacity Expansion Against the Cycle: Retrenchment in Europe, Growth in China & the Middle East
While headline capacity appears ample, the global supply map is being redrawn:
Covestro (announced June 30): Plans a new 660 kt/a MDI plant at its Caojing site in Shanghai, targeting pre-2030 start-up and utilizing its low-carbon AdiP process. A parallel feasibility study is underway for a similarly sized facility in the UAE. If realized, Covestro's total MDI capacity would surge from 1.77 Mt/a to ~3.09 Mt/a-surpassing BASF to become the world's second-largest producer.
Wanhua Chemical: Its 800 kt/a MDI unit in Fujian resumed operations on July 31 after a 38-day maintenance period. Following debottlenecking, Wanhua's total MDI capacity now stands at roughly 4.5 Mt/a, lifting its global market share above 40%. Concurrently, the group is positioning battery materials (LFP cathode) as a second growth pillar, committing RMB 5.32 billion alongside Xingfa Group to secure upstream resources.
European pullback: BASF, Covestro, and Huntsman plan to shutter 700–1,100 kt/a of MDI capacity across continental Europe during 2026–2027-equivalent to 38%–49% of regional nameplate capacity-driven by unfavorable energy economics and rising carbon costs.
3. Downstream & Application Highlights
Foshan Sanshui: A new 500 kt/a PU industrial base broke ground within the local New Materials Industrial Park; Huateng Polymer's integrated TPU project has entered the environmental review stage.
TPU consumer penetration: MINIMAL WORKS launched inflatable tent frames using TPU bladders; Miracll's price hike confirms robust cost-pass-through in the TPU segment.
Wind power blades: Covestro continues to promote its vacuum-infusion polyurethane resin system as an epoxy alternative, claiming 10%–30% gains in mechanical performance.
Litigation update: BASF and Covestro reached settlements in U.S. multidistrict litigation concerning alleged MDI/TDI price-fixing in Pennsylvania (BASF: USD 3 million; Covestro: USD 7 million), receiving preliminary court approval on July 23. The development carries limited but mildly negative implications for corporate compliance profiles.
4. Market Outlook (Consensus View)
August turnarounds will sustain tight prompt availability, underpinning MDI/TDI list prices.
With the traditional peak season arriving in September (upholstered furniture, refrigerators/freezers, shoe sole elastomers, and TPU restocking), polymeric MDI could test RMB 19,000–19,500/ton if downstream order books hold up.
Key downside risks include: easing Middle East shipping disruptions, full-scale output from Wanhua's Fujian complex hitting the merchant market, and weakening offtake following downstream product price hikes.