BASF Shanghai TDI plant shutdown triggers European isocyanate price pressure
Polymer Foams Market 2025 to 2032: Insulation Demand, Raw Material Economics and the Shift to Sustainable ResinsSeverity
Medium
Likelihood
High
Spend exposed
–
Confidence
85%
$
- Severity: how big the impact would be if this plays out.
- Likelihood: how probable the engine judges it is to happen or persist.
- Spend exposed: the share of your annual category spend this flags.
What changed
In October 2026, BASF's Shanghai TDI (toluene diisocyanate) plant went offline for repairs. This disruption led to sharp price increases for isocyanate raw materials in Europe, heightening margin pressure for rigid and flexible polyurethane foam manufacturers.
Recommended actions
11
Review contract indexation and hedge short-term isocyanate exposure
Monitoring raw material cost adjustments protects against rapid price pass-throughs from key polyol and isocyanate suppliers during supply pinches.