China’s chemical market witnessed divergent trends this week, with most polyurethane (PU) raw material prices trading in a consolidated range. The market dynamics were shaped by two key factors: concentrated plant maintenance for core products like TDI and MDI tightened supply, while softer demand in downstream sectors such as TPU, paste, and sole resin weighed on upward momentum. Meanwhile, materials including BDO and polyols faced downward pressure from rising supply and cautious procurement behavior. Looking ahead, the market is expected to maintain this range-bound consolidation in the short term, driven primarily by plant operation schedules and moderate downstream demand.
Key PU Raw Materials Market Performance & Analysis
Below is a detailed breakdown of major polyurethane raw materials, including supply-demand dynamics, price trends, and short-term outlooks:
1. TDI (Toluene Diisocyanate) – Supply Tightness Supports Firm Pricing
The domestic TDI market edged slightly lower at the start of the week, but supply constraints remained a key supportive factor. Covestro’s 300k mt/year Shanghai plant continues its maintenance shutdown, tightening overall market availability. Overseas TDI prices stayed firm, empowering domestic producers to maintain a strong pricing stance, while traders held back offers amid expectations of further price increases.
Downstream buyers showed resistance to high prices, with transactions limited to immediate operational needs. Market quotes remained dynamic:
• Covestro suspended new offers this week, with its last quoted price at RMB 15,400/mt.
• BASF’s November settlement price was RMB 14,000/mt (up RMB 400/mt month-on-month), and its December listed price jumped to RMB 18,000/mt (up RMB 2,000/mt).
• Wanhua Chemical’s November settlement price was RMB 13,900/mt (up RMB 300/mt month-on-month).
Outlook: TDI prices are expected to consolidate in the short term, with market direction dependent on plant maintenance progress and downstream procurement activity. For more details on TDI applications in flexible foam and coatings, refer to our product documentation or contact our technical team.
2. Pure MDI – Tight Supply Offset by Weak Downstream Demand
Domestic Pure MDI prices traded sideways this week, with mixed market sentiment. Crude oil prices dipped slightly (WTI at 60.64/bbl), but supply tightness remained a core support: the industry operating rate hovered around 50%, as major plants including Wanhua Ningbo, Covestro Shanghai, and BASF Chongqing were under maintenance. Producers maintained firm pricing, but some traders with high drummed inventory were eager to sell, while competitively-priced imports from Japan and South Korea capped upward gains.
Downstream demand remained weak:
• East China sole resin prices ranged from RMB 10,000–14,300/mt.
• Dry paste prices in East China were stable at RMB 8,300–8,700/mt.
• East China TPU (pure BG grade) prices softened to RMB 18,500–20,500/mt.
Outlook: Pure MDI is expected to trade within a narrow range, influenced by ongoing plant maintenance and cautious downstream buying. Explore our MDI DESMODUR 44 V 20 L product details for comprehensive insights on MDI applications and specifications.
3. Polymeric MDI – Stalemate Between Tight Supply and Stable Demand
The domestic Polymeric MDI market remained in a stalemate this week. Crude oil weakness (Brent 
56.74/bbl) was offset by supply constraints: the industry operating rate stayed near 50% due to maintenance at key plants (Wanhua Ningbo, Covestro Shanghai, BASF Chongqing). Producers held firm on prices, while trader sentiment was mixed—some with earlier high inventory were willing to sell at slightly discounted rates.
Downstream demand was stable, with new orders primarily coming from traditional sectors such as refrigeration (refrigerators), foam, spray foam, and molded insulation. Key market data:
• Covestro’s latest offer was RMB 15,300/mt (flat week-on-week).
• November settlement prices (flat month-on-month): Wanhua RMB 15,000/mt, BASF RMB 14,800/mt, Huntsman RMB 14,700/mt.
Outlook: Polymeric MDI is expected to see weak consolidation in the short term, with further direction pending updates on plant restarts and downstream demand recovery. For technical specifications of our MDI products, refer to MDI DESMODUR 44 V 20 L.
4. Adipic Acid (AA) – Moderate Cost Support Drives Mild Uptick
Domestic Adipic Acid prices edged up slightly this week. Crude oil prices dipped, but long-term stable raw material costs provided moderate cost support, and the market is gradually digesting recent producer price hikes. The industry operating rate was around 50%.
Downstream demand remained weak across key segments: East China sole resin (RMB 10,000–14,300/mt), dry paste (RMB 8,300–8,700/mt), and TPU (RMB 18,500–20,500/mt).
Outlook: Adipic Acid prices are expected to fluctuate within a narrow range, with trends tied to raw material cost stability and downstream demand improvements. Learn more about our Adipic Acid product offerings via Adipic Acid product page.
5. BDO (1,4-Butanediol) – Rising Supply Pressures Market
The domestic BDO market traded sideways with a weak bias. Upstream calcium carbide prices were stable, while methanol prices weakened slightly. Supply increased significantly as previously idled plants restarted, pushing up the overall industry operating rate. Despite traders’ efforts to support prices, growing supply kept the market under pressure.
Downstream buying was limited to need-based purchases. Major downstream sectors (including PBT, spandex) showed stable but not growing demand, leading to thin trading activity. PBT downstream operations were stable, but ample supply created downward price pressure for BDO.
Outlook: BDO prices are expected to trend weakly in the short term, dependent on plant operating rates and downstream production activity. Learn more about BDO’s role in polyurethane elastomers via our 1,4-Butanediol product page.
6. Propylene Oxide (PO) – Slight Weakness Amid Limited Demand
The domestic PO market weakened slightly this week. Upstream propylene prices dipped, while liquid chlorine prices firmed, providing decent cost support for PO producers. Plants operated normally, and producers maintained stable offers to clear inventory. Downstream buyers remained cautious, with purchases limited to immediate needs.
Outlook: PO is expected to consolidate in the short term, with market direction tied to PO plant operation stability and downstream demand recovery.
7. Polyols – Stable Supply, Cautious Demand
Flexible Polyol
The domestic Flexible Polyol market remained stable this week. Feedstock PO prices weakened slightly, but supply was balanced: plants scheduled production based on orders, keeping inventory pressure manageable. Producers maintained stable ex-factory prices, and traders followed producers’ guidance in negotiations. Downstream orders were stable, with buyers purchasing cautiously for immediate needs (focused on real estate, hospitality, and upholstered furniture sectors).
Outlook: Flexible Polyol prices are expected to remain stable in the short term.
Rigid Polyol
The domestic Rigid Polyol market was quiet this week. Feedstock PO prices softened slightly, but supply was normal as plants adjusted production to meet existing orders, keeping overall price levels stable. Downstream orders followed up steadily, but purchasing sentiment remained cautious.
Outlook: Rigid Polyol is expected to consolidate in the short term, with trends dependent on downstream demand recovery.
8. PTMEG (Polytetramethylene Ether Glycol) – Weak Cost Side, Stable Demand
The cost side for PTMEG (linked to BDO) was weak but stable this week. Demand from spandex producers in regions like Haining and Guangdong was average, with routine restocking activities. Long-term spandex demand is expected to support PTMEG, but short-term demand has not shown significant growth. Non-spandex sectors (paste, TPU) remained weak, with a wait-and-see sentiment.
Current mainstream PTMEG prices:
• 1800 MW grade: RMB 11,000–12,000/mt
• 1000 MW grade: RMB 13,000–13,500/mt
• 2000 MW grade: RMB 12,000–13,000/mt
Outlook: PTMEG prices are expected to trade sideways in the short term, supported by steady spandex demand.
Overall Market Outlook
China’s polyurethane raw material market will continue its range-bound consolidation in the near term. Supply dynamics will be dominated by plant maintenance schedules (especially for TDI/MDI) and restart progress of idled plants (for BDO/PO). Demand is expected to remain moderate, with no significant upside drivers in downstream sectors like TPU, paste, and sole resin in the short term.
Market participants should closely monitor:
• Maintenance updates for key TDI/MDI plants
• Raw material cost fluctuations (crude oil, propylene, methanol)
• Downstream demand recovery signals from real estate, furniture, and spandex sectors
