After a slowdown in late 2023, demand for MDI recovered in Q1 2024, particularly in the construction, automotive, and furniture sectors. There was increased demand for polyurethane products, driving MDI prices up.
In Q2 2024, MDI (Methylene Diphenyl Diisocyanate) prices saw a further increase of approximately 4% compared to Q1 2024, multiple factors contributed to the rise in MDI prices, with one of the key reasons being plant shutdowns. Significant production facilities, particularly in China, experienced planned and unplanned maintenance shutdowns. For instance, major producers like Wanhua Chemical and BASF reduced capacity for maintenance work at their MDI plants, exacerbating supply constraints.
As of August 2024, MDI (Methylene Diphenyl Diisocyanate) prices are fluctuating, reflecting a 9% increase from the previous month. In Q3 2024, the MDI (Methylene Diphenyl Diisocyanate) price trend in China and Asia will remain volatile due to a mix of supply constraints and weak demand. On the supply side, production will be tighter, particularly in Northeast Asia, influenced by factors such as maintenance shutdowns and reduced availability of key feedstocks like aniline and benzene. This limited supply will help support prices in the region. However, demand in key sectors like construction and automotive will remain weak, especially in China, where both industries will experience slowdowns due to economic challenges and a stagnant real estate market.
Looking ahead to Q4 2024 and beyond, the demand for Methylene Diphenyl Diisocyanate (MDI) in the quarter is expected to remain stable and firm, particularly driven by the automotive and construction sectors. The automotive industry is projected to see a resurgence in polyurethane usage, boosting MDI demand. Additionally, seasonal factors such as the increased consumption of thermoplastic polyurethane for footwear production may also contribute to demand growth.