On March 30, the Asia Polyurethane & Adhesive Expo 2026 officially opened at the World Trade Centre Kuala Lumpur, Malaysia. As one of the most influential industry events in Southeast Asia, the exhibition brings together global polyurethane industry chain enterprises, technology providers, and market participants to explore industry trends and future opportunities.
Leo Yang, Analyst at PUdaily, was invited to attend the event and delivered a keynote presentation, sharing his latest insights and perspectives on the global polyurethane market.
The presentation, titled “Polyurethane Market Under Pressure with Shifting Supply Dynamics,” focused on two key themes: cost pressure and supply-side structural shifts, providing a systematic analysis of the critical variables currently shaping the industry.
On the cost side, geopolitical conflicts have had a pronounced impact on energy and upstream chemical markets. Crude oil prices surged at certain stages and quickly transmitted through the “crude oil–naphtha–aromatics” value chain to key feedstocks such as benzene and toluene, significantly increasing production costs for MDI and TDI. In particular, TDI shows higher sensitivity to toluene price fluctuations due to its strong dependence on the toluene-based production route, resulting in faster and more pronounced cost transmission.
On the supply side, the global capacity landscape is undergoing continuous structural transformation. Asia, particularly China, remains the core region for capacity expansion in MDI, TDI, and polyether polyols. Future capacity additions are highly concentrated, leading to a global supply pattern characterized by regional concentration and export-oriented overflow. In contrast, Europe and the Americas have limited new projects, with their market roles stabilizing or gradually contracting.
This shift implies that operating rates, export flows, and pricing strategies in China and the broader Asian market will exert stronger influence over the global market.
On the demand side, the global polyurethane market continues to grow at a moderate pace, but regional divergence is becoming increasingly evident. Asia-Pacific and other emerging markets remain the primary growth engines, while Europe and North America face ongoing pressure from a weak real estate sector and slower economic growth.
From the downstream application perspective:
• Flexible furniture: Demand is gradually shifting from real estate-driven growth to replacement demand and export support.
• Automotive: Rapid development of new energy vehicles is becoming a key driver of polyurethane demand growth.
• Construction & insulation: Long-term potential remains under energy-efficiency policies, though short-term demand is constrained by the weak real estate sector.
Overall, the industry is transitioning from traditional cyclical fluctuations toward a new phase driven by structural changes.
“The reshaping of the cost structure, combined with the rebalancing of supply, is redefining the competitive logic of the global polyurethane market,” Leo Yang noted during his presentation.
The exhibition will continue through March 31. During the event, the PUdaily team will engage with industry partners from around the world, sharing the latest market data and insights.
Welcome to visit PUdaily at Booth B9.
Join us for face-to-face discussions on the latest trends and opportunities in the polyurethane market.