In the influences of a raging COVID-19 pandemic, the market for the PU foam raw material MDI, is expected to grow at a CAGR of over 5% globally. Peter Huntsman Chairman, a global leader in MDI-based polyurethane business, terms it a volatile market that will get even tighter in coming times. 

“The MDI market is fundamentally tight and I think you will see mega projects in the range of 400,000 to 600,000 tonnes in a single line. The global capacity is operating probably as high as 90%. While you get 2-3% taken out of the market in a single plank, you will see more volatility like this. The industry will get tighter and tighter in the future,” Huntsman mentioned at Deutsche Bank’s Global Basic Materials Conference on June 9-10, 2021. 

"I feel downstream processing is generating more cash flow. Hence, we will concentrate 70% of MDI business into downstream operations. We will be solely focused on a few areas and may shut down a few facilities. We will be more into blending materials, and expanding Terephthalic Acid (TPA) applications. While it may not necessarily mean right or wrong in the MDI market, the longer term goals are lesser volatility, more stability and cash flow,” added Huntsman.

In that case, as one of the main raw material of PU foam, the recovery of the MDI market will effect the price trend of PU foam product, it predict price will not go down in short time.