Commodity Chemical Update—Polyurethanes (May 2026)

Research evidence excerpt

Commodity Chemical Update—Polyurethanes (May 2026)

Equity Research

Industry Update — May 20, 2026

Chemicals

Commodity Chemical Update—Polyurethanes

(May 2026)

MDI Prices Increased M/M in April on Benzene Costs

Our Call Michael Sison

CMA reported MDI prices across regions increased M/M in April. This was driven by higher Equity Analyst | Wells Fargo Securities, LLC

Michael.Sison@wellsfargo.com | 440-662-9664

benzene prices (supply remains short due to the conflict in the Middle East) instead of by

Abigail J. Ebertsstronger demand or supply tightness for MDI, itself.

Associate Equity Analyst | Wells Fargo Securities, LLC

Abigail.Eberts@wellsfargo.com | 332-877-5728

MDI Prices Increased M/M in April: CMA reported North American polymeric MDI prices

increased 12% M/M (monomeric was flat). In Europe, poymeric MDI prices increased

16% M/M in April (monomeric +7% M/M), while polymeric MDI prices in China increased

20% M/M (monomeric +16% M/M). The increase in North America was partially driven

by higher benzene prices (up $0.96/gallon M/M) as supply tightness intensified (MDI

producers pushed pricing higher to preserve margins).

Supply/Demand in North America Appears Balanced: While MDI prices increased

due to higher costs, underlying fundamentals in the MDI market in North America

appear relatively balanced. Supply remained readily available in April, and the market was

supported by slightly stronger demand toward the end of the month (driven by a seasonal

increase in construction activity). That said, cumulative order volumes are still down Y/Y.

Soft Fundamentals Across Europe & Asia: MDI demand in Europe continued to weaken

across construction, automotive, and appliance markets during April (the normal spring

boom in construction has not materialized).