Covestro Declares Force Majeure on IPDI Supply, Prices Surge in China

Covestro, IPDI Also Faces Force Majeure!

On March 25, Covestro (Shanghai) Investment Co., Ltd. issued a force majeure declaration regarding IPDI and its derivatives. The statement indicated that due to an unforeseen and unavoidable sudden technical failure, IPDI production has been affected, necessitating the declaration of force majeure for IPDI and its derivatives. During the force majeure period, on-time delivery cannot be guaranteed.

Prior to this, Evonik had just released a force majeure declaration regarding VESTANAT® IPDI, only a day earlier. Isophorone diisocyanate (IPDI) is an aliphatic diisocyanate widely used in industries such as plastics, adhesives, pharmaceuticals, and fragrances.

Latest IPDI Price Situation

As of the latest update on March 27, affected by Covestro's force majeure on IPDI supply in China, the domestic IPDI market continues to rise, with fewer reports of low prices. On that day, the quoted price in East China was 38,500 yuan/ton, a week-on-week increase of 2.67%.

On March 25, reports indicated that the East China IPDI price range was between 38,000 and 40,000 yuan/ton. As of 2:00 PM that day, sources revealed that due to Evonik's force majeure on IPDI supply in Europe, major suppliers had raised their offers, and transaction details need further observation. However, since the beginning of March, the domestic IPDI market has remained relatively stable, with a controlled supply side and demand mainly driven by essential purchases.