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Polyurethane Resin Price Trends in North America – Q2 2025
The Polyurethane Resin market in North America witnessed a noticeable decline in prices during the second quarter of 2025. The spot price recorded an 8.47% decrease quarter-over-quarter, reflecting a softer Price Index. This shift is indicative of evolving market dynamics, driven by fluctuating demand, supply-side adjustments, feedstock costs, and macroeconomic factors. This article provides an in-depth analysis of the price movement, key drivers, market segments, and forecasts for the remainder of 2025.
Overview of Polyurethane Resin Market in North America
Polyurethane resin is a versatile polymer used extensively across various industries, including construction, automotive, furniture, electronics, footwear, and coatings. The material’s flexibility, durability, and resistance to chemicals make it a preferred choice for insulation panels, adhesives, sealants, and molded products.
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In North America, the polyurethane resin market is influenced by industrial activity, infrastructure development, real estate trends, and evolving consumer preferences. The U.S. and Canada account for a significant share of the market, with robust downstream industries utilizing the product in both consumer and commercial applications.
However, in Q2 2025, the market experienced headwinds, resulting in a notable decline in spot prices.
Price Movement: Q2 2025
The polyurethane resin spot price in North America declined by 8.47% quarter-over-quarter in Q2 2025. The softer Price Index suggests a moderation in demand coupled with improved supply availability.
Q1 2025 Closing Price: USD 2,050/MT (DEL Gulf Coast)
Q2 2025 Closing Price: USD 1,875/MT (DEL Gulf Coast)
Quarterly Change: −8.47%
This downward movement contrasts with previous quarters where supply disruptions and higher raw material costs led to price spikes. The current trend reflects a market correction influenced by shifting demand patterns and supply stabilization.
Key Drivers Behind the Price Decline
1. Weaker Construction and Real Estate Activity
One of the primary end-use sectors for polyurethane resin is construction, particularly for insulation and flooring solutions. In Q2 2025, North America’s construction sector witnessed a slowdown due to elevated interest rates and cautious investment in residential projects. Commercial real estate developers also deferred projects amidst uncertain economic conditions, reducing bulk purchases of resin.
2. Stabilization of Raw Material Prices
The key feedstocks for polyurethane resins—such as methylene diphenyl diisocyanate (MDI) and polyols—saw price stabilization after supply disruptions in early 2025. With energy prices leveling and raw material supply chains improving, producers passed on lower costs to buyers, contributing to price softness.
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3. Inflationary Pressures and Changing Consumption Patterns
Although inflation remained a concern, consumers and businesses adjusted their expenditure, prioritizing essential products over discretionary applications. Industries such as furniture and automotive recorded slower growth, reducing orders for polyurethane-based products.
4. Inventory Corrections
After a period of overstocking in late 2024, distributors and manufacturers opted to deplete inventories rather than aggressively procure new supplies. This inventory correction led to softer pricing as supply outpaced immediate demand.
5. Environmental and Sustainability Trends
Growing focus on sustainability and circular materials influenced procurement decisions. Some downstream manufacturers explored bio-based alternatives or formulations with lower environmental impact, causing marginal declines in conventional resin consumption.
Regional Breakdown: United States vs. Canada
United States
The U.S. market accounted for the majority of the volume decline. Demand from insulation, coatings, and automotive sectors slowed as construction activity and consumer spending tapered off. Price competition among suppliers intensified, leading to discounts and longer payment terms for bulk buyers.
Canada
In contrast, Canada's market remained relatively stable, with minor quarterly declines. Government-backed infrastructure projects offered some support, although tight labor markets and higher operational costs limited significant price recoveries.
Comparison with Europe and APAC
Europe
In Europe, polyurethane resin prices declined by 9.81% quarter-over-quarter in Q2 2025, reflecting a sharper slowdown than in North America. The European market was impacted by energy price volatility, geopolitical tensions, and supply chain disruptions from Eastern Europe. Stricter environmental regulations also pressured manufacturers to rethink formulations and logistics.
Asia-Pacific (APAC)
The APAC region reported a 2.6% decline in polyurethane resin spot prices, indicating a more moderate correction. Stronger demand from construction projects in Southeast Asia and recovering automotive sectors in China and South Korea helped cushion the decline. However, cost pressures from logistics and tariffs tempered growth.
Comparative Insight
While North America and Europe experienced pronounced declines due to economic uncertainty and supply-side improvements, APAC’s market remained comparatively resilient. This reflects differing economic cycles and sector-specific recovery trajectories.
End-Use Industry Trends
Construction
Demand from the construction sector declined, particularly in insulation materials, which are a key segment for polyurethane resin. Rising borrowing costs and regulatory hurdles limited new project initiations.
Automotive
Although electric vehicle (EV) production continued to expand, overall automotive output slowed due to semiconductor shortages and shifting consumer preferences. This impacted foam-based interior and exterior components.
Furniture and Bedding
Consumer hesitancy to spend on non-essential furniture and bedding solutions led to reduced orders for flexible foam products.
Industrial Applications
Adhesives, sealants, and coatings segments reported steady demand, supported by maintenance and repair activities. However, pricing pressures affected profit margins.
Supply Chain Dynamics
Feedstock Availability
The supply of MDI and polyols improved, with additional capacity coming online in the U.S. Gulf Coast. This reduced raw material volatility and allowed producers to stabilize pricing.
Logistics and Transportation
Freight rates, which spiked in 2024, began to ease, allowing smoother distribution. Rail and port congestion also improved, facilitating better delivery schedules.
Regulatory Environment
The push toward sustainability and emissions reductions prompted investments in bio-based feedstocks and recycling processes. However, compliance costs remain a challenge for smaller manufacturers.
Forecast for Q3 and Beyond
Short-Term Outlook (Q3 2025)
Prices are expected to remain under pressure in the short term, with forecasts projecting a further 2% to 3% decline in Q3 2025.
Demand recovery will be gradual, contingent on broader economic stabilization and housing market trends.
Supply-side efficiency gains and favorable logistics will keep pressure on pricing, although margins for producers may tighten.
Medium-Term Outlook (Q4 2025 – 2026)
Construction activity is expected to rebound in the second half of 2025 as financing conditions ease and infrastructure spending resumes.
Automotive demand may recover as EV adoption accelerates, boosting polyurethane foam applications.
Sustainability initiatives will reshape product offerings, potentially leading to premium segments and niche markets.
Challenges Facing the Industry
Volatile Energy Costs – Any resurgence in crude oil or natural gas prices could reverse supply-side benefits.
Environmental Compliance Costs – Meeting stringent emission targets requires significant investment in process upgrades.
Supply Chain Disruptions – Global geopolitical issues and labor shortages could create bottlenecks.
Substitution Threats – Bio-based and alternative polymers may erode market share in the long run.
Opportunities
Green Innovation – Development of recyclable and bio-based formulations opens avenues for premium pricing.
Infrastructure Development – Government stimulus packages aimed at energy-efficient buildings will boost demand.
Electric Mobility – Expansion of EV production supports lightweight, durable polymer solutions.
Export Growth – North American manufacturers can leverage cost advantages for exports, especially to markets in Latin America and Asia.
Conclusion
The North American polyurethane resin market entered a phase of correction in Q2 2025, with an 8.47% decline in spot prices quarter-over-quarter. The softening reflects a combination of reduced demand, stable raw material costs, and inventory adjustments. Compared to Europe’s sharper decline and APAC’s more tempered downturn, North America’s market dynamics suggest an industry in transition—balancing cost efficiencies with shifting consumption patterns.
While challenges such as inflationary pressures, regulatory compliance, and substitution risks persist, opportunities in sustainable innovation, infrastructure investments, and electric mobility present pathways for recovery and growth. The trajectory for the rest of 2025 will depend on broader macroeconomic trends, sector-specific developments, and supply chain resilience.
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