Wanhua Chemical raises overseas MDI prices for the second time; domestic and international giants hike prices in unison

Following the announcement on July 29 of a price increase of $200/ton for MDI and TDI in the Southeast Asian market, news of another round of price increases by Wanhua Chemical emerged on August 3. Driven by the continuous rise in raw and energy material costs, combined with restricted global supply chain circulation, the company announced that starting from August 3, 2026, it will raise prices for all MDI products in the Middle East, Africa, and Turkey by the same amount of $200/ton.

This round of successive price increases by Wanhua Chemical covers key overseas markets including Southeast Asia, the Middle East, Africa, and Turkey. Market analysis indicates that ongoing geopolitical conflicts in the Middle East continue to disrupt international crude oil and chemical logistics, pushing up raw material procurement and ocean freight costs. Meanwhile, multiple global polyurethane plants have entered maintenance cycles, tightening spot supply in overseas regions, which has become a significant driver for leading enterprises to collectively raise export prices.

Domestic and International Giants Move in Tandem; Polyurethane Raw Materials Experience a Wave of Price Hikes

Wanhua Chemical is not the only company adjusting prices this round. Last week, BASF and Huntsman successively issued announcements for MDI and TDI price increases, creating a synchronized atmosphere of price support across the global polyurethane industry.

In overseas markets, Huntsman implemented multiple rounds of price increases by region: starting July 27, prices for MDI and polyurethane systems in India and the Indian subcontinent were raised by $300/ton (approximately RMB 2,020/ton); simultaneously, it was confirmed that starting August 1, 2026, prices for all MDI products in Europe, Africa, and the Middle East will increase by €250/ton (approximately RMB 1,930/ton), with long-term cooperative customers able to execute the price adjustment according to contract agreements.

Signals of price increases in the domestic market are also continuously being released. Shanghai Covestro quoted its latest aggregated MDI distribution channel price at RMB 22,300/ton this week, with a terminal fixed price of RMB 22,500/ton, representing a week-on-week increase of RMB 300/ton. Shanghai BASF set its August TDI list price at RMB 19,000/ton, an increase of RMB 1,000/ton compared to the previous month.

From the perspective of the industry landscape, global MDI capacity is highly concentrated, with leading enterprises such as Wanhua Chemical, Covestro, BASF, and Huntsman occupying the vast majority of capacity. Unified price adjustments by these leaders easily create price resonance, continuously bolstering market expectations for price increases.

Double Support from Costs and Supply; Domestic MDI Spot Prices Steadily Move Upward

This round of price increases along the industry chain has clear fundamental support. On the cost side, high-level oscillation in international oil prices has driven up the prices of upstream basic chemical raw materials such as pure benzene and toluene, continuously lifting the production costs of MDI and TDI. Regarding logistics, the obstruction of some sea shipping channels, extended ocean freight cycles, and rising freight rates have further increased operational pressure on enterprises.

On the supply side, multiple overseas manufacturers have planned plant maintenance for the third quarter, leading to a contraction in goods supply in overseas regions. Overseas buyers are seeking Chinese goods to fill the gap, keeping domestic MDI export orders relatively stable. As the domestic market gradually enters the traditional peak demand season, operating rates in downstream industries such as refrigeration cold chains, construction insulation, and adhesives are warming up, and the willingness for market restocking has recovered, leading to continuous improvement in the supply-demand balance.

Downstream Pressure Emerges; Cost Transmission Pressure Concentrates Upstream

The continuous rise in raw material prices is constantly increasing the cost pressure on downstream polyurethane manufacturing enterprises. At this stage, upstream chemical giants have strong bargaining power, and price increase instructions are implemented smoothly, but the market for downstream products is fiercely competitive, creating resistance to passing costs downward.

Industry insiders indicate that in the short term, under the dual factors of cost support and tightened overseas supply, MDI and TDI prices are more likely to rise than fall. Moving forward, it is necessary to continuously track the progress of overseas plant maintenance, fluctuations in international energy prices, and the strength of recovery in downstream terminal demand. If the downstream sector continues to be unable to digest raw material increases, the momentum for market rises may gradually weaken in the later period.