MDI prices to increase? BASF raises the price of MDI

MDI prices to increase? BASF raises the price of MDI

January 31, 2023

On Jan. 27, BASF announced a $300 per metric ton price increase for its Lupranate MDI base product in ASEAN and South Asia, effective immediately.

Southeast Asia. MDI prices in China consolidated while rising from late December through the Chinese New Year holiday. In contrast, prices in Southeast Asia slipped to $1,600-$1,650 per metric ton. Therefore, BASF's price increase can be seen as a compensatory price increase.

Chinese MDI market before Chinese New Year

Mainstream MDI suppliers in China reduced their supply in January due to the approaching Chinese New Year and in view of the fact that some MDI suppliers will undergo maintenance in February this year. In addition, orders for future deliveries dominated as spot supply was reduced due to the intensive trading in the first ten days of January. Trading became thinner in the week leading up to the holidays as market participants had mostly exited the market. However, the market still saw a slight increase in the 3rd week of January as the remaining market participants were reluctant to sell. on January 20, the PMDI price in China was RMB 14,800-15,200/mt. on January 29, it was difficult to hear clear offers in the market as many downstream manufacturers had not yet returned to the market. Market participants are waiting for the new listing price announcement from mainstream MDI suppliers next Monday.

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