Huntsman announces price increases for polyols and MDI in the US market

Huntsman has announced price hikes for its polyurethane raw materials in the United States, effective immediately or as contract terms allow. MDI products would increase by USD 260/tonne, while polyol products will climb by USD 110/tonne. The move underscores persistent cost constraints and shifting supply-demand factors in North America.

The timing is consistent with the customary seasonal window for polyurethane pricing adjustments, while major consuming economies such as China, Taiwan (China), Vietnam, and other Southeast Asian countries remain muted for the Lunar New Year holiday period. Concurrently, the Middle Eastern market is entering the Ramadan season, when pre-festival stockpiling demand normally increases, allowing producers to achieve seamless shipments and maintain lean inventory positions.

Geopolitical tensions in the Middle East have risen further after Iran temporarily closed the Strait of Hormuz on February 17. Although the relocation lasted only a few hours, it raised concerns about the security of this critical oil transport chokepoint, through which roughly one-fifth of the world's daily oil supply passes. International oil prices rose in response, with WTI up 4.59% to USD 65.19/barrel and Brent up 4.35% to USD 70.35/barrel as of February 18, potentially impacting upstream cost structures for petrochemical derivatives.

Source: PUdaily