MDI Prices Rise in South Asia

BASF has announced a US$200/tonne price increase for MDI products in South Asia, coinciding with a steady upward trend in China’s domestic pure MDI market. Prices have risen in a clear stepwise pattern, driven by tight supply and reduced imports. In Shanghai, pure MDI has climbed from 18,400 yuan/tonne at the start of the month to around 19,500 yuan/tonne, supported by higher factory guidance prices. Shanghai’s November listing price rose by 500 yuan/tonne to 24,000 yuan/tonne, while ten-day barrel quotations also increased, reinforcing traders’ willingness to maintain high offers.

Supply contraction remains the main catalyst for this round of price rises. Wanhua’s 1.5-million-tonne/year Ningbo unit began a 55-day shutdown on 15 November, and Covestro’s 600,000-tonne/year Shanghai plant and BASF’s 440,000-tonne/year Chongqing plant are set for maintenance in December. As a result, industry operating rates have dropped and spot resources remain tight. Import pressures persist as shipping delays from Japan and South Korea further restrict availability.

Globally, regional differences in the MDI market are becoming more pronounced. BASF’s increases in South Asia reflect broader Asian demand. China’s pure MDI exports rose 18.86% year-on-year in October 2025, with January–October exports reaching 103,400 tonnes. Strong demand from emerging Asian economies highlights ongoing industrialisation and evolving supply-chain structures.

In the near term, continued plant maintenance and uncertain import schedules will keep the market firm. Over the medium to long term, supply contraction will support prices, although demand-side rigidity may cap gains. Future trends will depend on plant restarts, import recovery and downstream demand conditions.

Source: BASF