BASF stated that this price adjustment is to ensure sustainable business development while addressing the continuous significant rise in raw material, energy, and transportation costs. Recent escalating geopolitical conflicts in the Middle East and shipping disruptions in the Strait of Hormuz have further driven up prices of crude oil, natural gas, and key chemical raw materials. Coupled with reduced regional logistics efficiency and rigid increases in supply chain costs, corporate cost pressures continue to intensify.

It is worth noting that this is already the third round of centralized price adjustments initiated by BASF for MDI and TDI in the Asia-Pacific region since 2026, with the pace and magnitude of adjustments significantly accelerating:

· January 7: BASF raised MDI (MS grade) prices in ASEAN + South Asia by $300 per ton;

· January 10: TDI products in the same region were simultaneously increased by $300 per ton;

· February 4: TDI prices in the Asia-Pacific region (excluding Mainland China) were raised by $200 per ton;

· February 25: MDI prices in the ASEAN region were further increased by $200 per ton.

As core raw materials in the polyurethane industry chain, MDI and TDI are widely used in construction insulation, home appliances, automotive, coatings, adhesives, and other fields. BASF's consecutive significant price hikes, combined with factors such as industry facility maintenance and tightening regional supply, have driven an overall upward trend in polyurethane raw material prices in Northeast Asia. Subsequent cost pressures may further propagate to downstream manufacturing sectors.