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At the beginning of the third quarter of ****, Hexamethylene Diisocyanate (HDI) prices increased in the European region. Output was impacted by limited availability of feedstock Hexamethylene Diamine, transport delays, and increased compliance expenses. Hexamethylene Diamine costs went up as ammonia prices climbed following the EU鈥檚 ban on Russian and Belarusian imports, while low Rhine River water levels and new CBAM rules added to the strain. At the same time, HDI consumption stayed firm, supported by a rise in automotive sales, especially electric vehicles, which lifted demand for HDI in coatings, adhesives, and sealants. In construction, weak housing activity was partly offset by steady use of HDI in protective coatings for infrastructure and civil engineering projects.

The production of HDI in Europe was affected in July due to tighter supplies of precursor Hexamethylene Diamine, transport delays, and higher compliance costs, which increased overall manufacturing...