December 15, 2025 – Wanhua Chemical, a global leader in isocyanate and polyurethane (PU) materials, announced a USD 200 per ton price increase for all its MDI (Methylene Diphenyl Diisocyanate) and TDI (Toluene Diisocyanate) products in the Latin America region. The adjustment takes effect immediately on December 15, 2025, or in line with existing contract terms, reflecting the company’s response to evolving market dynamics and commitment to sustainable operations and reliable supply.
Global Chemical Giants Lead MDI/TDI Price Hikes
Wanhua’s price adjustment aligns with a broader global trend of cost-driven price increases across the MDI and TDI markets. Major industry players have recently announced similar moves across key regions:
• December 3, 2025: Dow Chemical raised MDI prices by EUR 300 per ton in Europe, the Middle East, Africa, and India.
• December 2, 2025: Huntsman implemented a EUR 350 per ton MDI price hike in Europe, Africa, and the Middle East.
• December 1, 2025: BASF increased TDI prices by USD 200 per ton in ASEAN and South Asia.
• November 20, 2025: BASF previously raised MDI prices by USD 200 per ton in South Asia.
This coordinated price movement underscores the industry-wide challenges of rising input costs and shifting supply-demand dynamics, with leading manufacturers acting to maintain operational sustainability and service quality.
Key Drivers Behind the Price Adjustments
The primary force driving these global price hikes is the continuous surge in raw material, energy, and transportation costs – pressures that have reshaped the cost structure of isocyanate production globally.
China’s domestic market data reflects this upward trend: as of December 8, 2025, the average prices for pure MDI, polymeric MDI, and TDI stood at RMB 19,500, RMB 14,600, and RMB 14,356 per ton respectively. Compared to November 20, 2025, these represent increases of RMB 150 (pure MDI), RMB 250 (polymeric MDI), and RMB 550 (TDI) per ton. For Latin America specifically, regional logistics costs and local market conditions further amplify these cost pressures, supporting the need for price adjustments.
Additionally, global MDI capacity remains highly concentrated – Wanhua Chemical, BASF, Dow, and Huntsman collectively hold over 80% of global capacity – giving these leaders significant influence over market pricing and trends.
MDI & TDI: Core Materials Powering Global Industries
As key members of the isocyanate family, MDI and TDI are indispensable raw materials for polyurethane production, enabling a wide range of high-performance products across industries thanks to PU’s excellent thermal insulation, soundproofing, and wear-resistant properties.
MDI: The Cornerstone of Rigid Polyurethane
MDI is primarily divided into two categories, each serving critical applications:
• Polymeric MDI: Cost-effective and versatile, it is the primary material for rigid polyurethane foam. This foam is used in refrigerator/freezer insulation layers, building exterior wall insulation, container insulation panels, and automotive interior components.
• Pure MDI: Boasting high purity and stable performance, it is essential for polyurethane elastomers, synthetic leather, spandex, and adhesives. It also plays a key role in niche high-end markets such as premium footwear materials, medical consumables, and high-quality coatings.
TDI: The Core of Flexible Polyurethane
Complementing MDI, TDI is focused on flexible polyurethane foam production – the material behind sofas, mattresses, automotive seat cushions, and other soft furnishings. It also finds applications in polyurethane coatings, adhesives, and elastomers, making it more closely tied to consumer goods and daily life sectors than MDI.
Wanhua’s Latin America Strategy and Market Outlook
Wanhua Chemical’s presence in Latin America includes established operations such as Wanhua Chemical (Colombia) S.A.S. and Wanhua Polyurethanes Latin America Ltda. in Brazil, reflecting its long-term commitment to the region. This price adjustment ensures the company can continue delivering consistent, high-quality supplies to local customers across construction, automotive, furniture, and appliance sectors.
Looking ahead, global demand for MDI and TDI is projected to maintain steady growth, with a compound annual growth rate (CAGR) of 4-6% through 2025. Key drivers include expanding green building projects (fueling insulation material demand) and the recovery of automotive and furniture industries. For Latin America, this growth trajectory, combined with persistent cost pressures, suggests the current price adjustment may be part of a broader trend toward market stabilization.
As the industry adapts to evolving cost structures and demand patterns, Wanhua Chemical’s price move reinforces the importance of balancing operational sustainability with customer value – a dynamic that will continue shaping the global isocyanate market in 2025 and beyond.
