In April 2026, ten leading international chemical companies, including Huntsman, BASF, Covestro, and Wanhua, simultaneously increased prices for polyurethane (PU) and downstream products by 20–30% across multiple regions. This development has significant implications for industries reliant on these materials, particularly in manufacturing, construction, and automotive sectors. The price hikes have already impacted China's export contracts, with European, American, and Southeast Asian clients negotiating long-term contract revisions and cost-sharing mechanisms.

Event Overview

Starting April 1, 2026, Huntsman, BASF, Covestro, and seven other major chemical firms raised prices for PU and related products globally. Huntsman (Shanghai) increased its aggregated MDI listing price to 23,000 RMB/ton, while Covestro raised PU system product prices by 30%. The adjustments have affected export contracts from China, prompting renegotiations with international buyers.

Impact on Sub-Sectors

Direct Trade Enterprises

Exporters of PU system materials face immediate cost pressures, with prices rising by 30%. Contracts under negotiation or renewal require urgent reassessment to account for the increased costs.

Raw Material Procurement

Manufacturers dependent on PU intermediates must adjust budgets or seek alternative suppliers. The price surge may disrupt supply chains, particularly for small and medium-sized enterprises.

Processing and Manufacturing

Downstream industries, such as automotive parts and insulation materials, will see production costs rise. Companies may need to pass these costs to consumers or absorb margins.

Supply Chain Services

Logistics and procurement intermediaries must adapt to fluctuating prices and renegotiate terms with clients to maintain profitability.

Key Focus Areas and Recommended Actions

Monitor Price Trends

Track official announcements from major suppliers for further adjustments. Price volatility may persist in the short term.

Reassess Contracts

Review existing agreements with clients and suppliers to incorporate price escalation clauses or cost-sharing mechanisms.

Explore Alternatives

Evaluate substitute materials or regional suppliers to mitigate dependency on high-cost PU products.

Strengthen Communication

Engage with customers transparently about price adjustments to manage expectations and maintain relationships.

Editorial Perspective

From an industry standpoint, this price hike reflects broader supply chain tensions and rising raw material costs. While it signals short-term challenges, it also underscores the need for strategic planning and diversification. Companies should treat this as a prompt to reassess their supply chain resilience.

Conclusion

The collective price increase by global chemical giants highlights growing cost pressures in the PU industry. Businesses must act proactively to navigate these changes, balancing cost management with customer relations. The situation warrants close monitoring as further adjustments may follow.

Sources

1. Huntsman Corporation official statement
2. BASF pricing update bulletin
3. Covestro market adjustment notice
4. Wanhua Chemical Group announcement