Global isocyanates markets are currently stable on the back of good supply and demand. The market usually starts the year on a quiet note following the holiday period but,as activity picks up,expectations so far are for a calmer year compared to the last two years. However,ongoing trade wars,environmental legislations,sanctions and Brexit,among other issues,are likely to affect the isocyanates markets. The MDI market in North America continues to be long,a trend likely to continue in Ql. Last year,prices started declining around July,and continued to do so until the end of the year. Prices are not expected to recover as supply is long and demand is still weak. A number of new MDI facilities are planned to come online over the next five years. BASF,Covestro,Huntsman and Wanhua have all announced new plants will be built in the US between now and 2024. Quarter one demand is expected to follow the same weak path seen in the last quarter of 2018. Demand from construction traditionally slows down from around this time of year until early spring. The auto sector continues to be a concern based on trade wars,automotive law changes and other factors which could affect production.
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