Founder: Performance of 25Q1 polyurethane companies is under pressure, MDI/TDI prices expected to recover in the second quarter.

Founder's report indicated that overseas polyurethane companies encountered pressure on both volume and price in Q1 of 2025, leading to a widespread decline in profits. By the end of April, MDI/TDI prices had stabilized and rebounded, with suppliers beginning to control production levels to support the market. In addition, the progress in the phase of the US-China trade negotiations has further boosted expectations for the recovery of the polyurethane business in the Asia-Pacific region in Q2 of 2025. Due to the cross-regional delivery capabilities of leading overseas polyurethane companies such as BC, concerns regarding tariffs and anti-dumping measures should not be overly worrisome. The cost advantage of domestic production capacity and the anticipated strong market cycle in the future also indicate promising odds for the mid-to-long term. Recommendations include paying attention to Wanhua Chemical Group and Miracll Chemicals. Key points from Founder's analysis: - Overseas polyurethane companies faced pressure on volume and price in Q1 of 2025, resulting in a general decline in profits. - Tariffs affected the polyurethane market in Q1, but prices of MDI/TDI are expected to undergo a phase of recovery in Q2. - Various companies are accelerating asset disposals to reduce costs, and future performance forecasts are cautious. - Risk factors include significant fluctuations in product prices, unexpected impacts from anti-dumping measures, and risks related to US-China trade tariffs.