BASF announces price increase for polyurethane

BASF has recently announced that effective August 15, 2010, or as stipulated in relevant contracts, it will implement a price increase of $0.07 per pound for all its spray polyurethane and adhesive products sold in North America. This includes product lines such as ELASTOSPRAY, COMFORTFOAM, SPRAYTITE, ENERTITE, and WALLTITE. The adjustment is primarily aimed at offsetting rising raw material costs, which have put pressure on production margins across the industry. From a domestic perspective, polymerization MDI prices have remained stable at 15,650 yuan/ton since late July, while pure MDI has increased by 300 yuan/ton, reaching 16,450 yuan/ton. These trends reflect ongoing cost pressures within the Chinese market. Globally, the MDI market saw some fluctuations in August. One foreign supplier offered aggregate MDI at 1,740–1,750 USD/ton (CFR China main port), with transactions falling within this range, though trade volumes were limited. Another foreign supplier quoted at 1,800 USD/ton, but no confirmed deals have been made yet. In the TDI market, Qingdao prices remained steady at 20,500 yuan/ton, with generally good inventory levels and active sales. Meanwhile, the Guangzhou diethylene glycol market experienced a slight softening, with some domestic prices dropping slightly due to limited import supply and short-term market adjustments. Prices fell 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 larger orders were being discussed at 6,300 yuan/ton. Most recent transactions were driven by traders rather than end-users. Ester factories continue to hold significant inventories, with procurement activity remaining subdued. Yanshan Petrochemical raised its ethylene glycol factory price by 300 yuan/ton to 6,800 yuan/ton, and the plant is operating smoothly. Although spot sales are not high, purchases from peripheral users have shown positive signs, and manufacturers are maintaining low inventory levels.