Huntsman Corporation reported a notable sequential improvement in pricing for its Polyurethanes segment, with North American prices showing significant gains for the first time since 2022. The company indicated that global MDI (methylene diphenyl diisocyanate) operating rates are currently in the high 80% range, with European volumes rising by 4% due to demand from sectors like technical insulation and adhesives. Despite these positive trends, CEO Peter Huntsman cautioned that Polyurethanes margins remain below mid-cycle levels, emphasizing the need for sustained demand and raw material stability.
The anticipated increase in second-quarter EBITDA for the Performance Products segment, projected at $30 million to $40 million, reflects improved order patterns driven by seasonality and customer pre-buying behavior. However, Huntsman flagged potential headwinds from high energy costs in Europe and ongoing logistical challenges in the Saudi ethylenamines joint venture, which could impact profitability.
Market professionals should note that while Huntsman is experiencing improved pricing and demand, the sustainability of these trends hinges on broader economic factors, including energy costs and supply chain stability, which may influence future margins and operational efficiency.
Source: fool.com