BASF announces price increase for polyurethane

BASF has recently announced that starting August 15, 2010, or as stipulated in relevant contracts, it will implement a price increase of $0.07 per pound for all its sprayed polyurethane and adhesive products sold in North America. This includes popular product lines such as ELASTOSPRAY, COMFORTFOAM, SPRAYTITE, ENERTITE, and WALLTITE. The adjustment is primarily aimed at offsetting rising raw material costs, which have placed significant pressure on production margins. From a domestic perspective, polymerization MDI prices have remained stable at 15,650 yuan/ton since late July, while pure MDI saw a slight increase, rising from 16,150 yuan/ton to 16,450 yuan/ton during the same period. These cost pressures are being closely monitored by industry players, who are adjusting their strategies accordingly. On the international front, MDI supply offers in August showed a decline compared to July. A major foreign supplier quoted prices between $1,740–$1,750/ton (CFR China main port), with some transactions reported within this range, though trade volumes were limited. Another international supplier offered MDI at $1,800/ton (CFR China main port), but no confirmed deals have been made yet. In addition, the Qingdao TDI market remained steady at 20,500 yuan/ton. Inventory levels are generally normal, and sales activity remains active. Meanwhile, the Guangzhou diethylene glycol market experienced a softening in prices, with some domestic suppliers offering slightly lower rates due to limited imports and short-term market adjustments. Prices dropped to around 9,100 yuan/ton. In East China, the glycol market faced stagflation, with sellers increasing shipments. Some traders expressed interest in shipping at 6,350–6,400 yuan/ton in Zhangjiagang, while bulk buyers were targeting 6,300 yuan/ton. Most recent transactions were conducted through trading companies. Ester factories have significant inventory, and procurement activity remains cautious. Yanshan Petrochemical raised its ethylene glycol factory price by 300 yuan/ton to 6,800 yuan/ton. The plant is operating smoothly, with limited spot sales. Recent purchases from peripheral users have been positive, and manufacturers are maintaining low inventory levels.