ADI performed a comprehensive review of vertically integrated spray polyurethane foam (SPF) producers, mapping the MDI and polyol supply chains. The study analyzed feedstock advantages in the U.S. Gulf Coast versus China and evaluated the risk of channel conflict between MDI suppliers and independent system houses. Strategic implications focused on price discipline and end-use diversification into commercial construction and midstream oil & gas.
The client
Global building materials company
The situation
A manufacturer sought to understand the competitive advantages and pricing strategies of vertically integrated foam producers.
ADI’s contributions
Integrated cost modeling
Analysis of benzene and natural gas feedstocks established a production cost advantage for China-based MDI assets.
Forward integration assessment
Interviews with system houses and distributors revealed the mixed results of MDI producers competing with their own customers.
Pricing strategy benchmarks
Sourcing of polymeric MDI and polyol price ranges established volume-based discount thresholds for strategic accounts.
Application market segmentation
Mapping MDI end-markets showed that insulation accounts for only one-third of demand, limiting SPF’s impact on raw material pricing.
Key outcomes
- Realignment of competitive positioning based on the low share of SPF demand in the broader MDI market and observed price discipline.
More insights
News
Newsletter: Data center power, ammonia, and biofuel mandates
In the June 2026 edition, AI-driven demand is surging, but constraints in grid capacity, permitting, and equipment supply are reshaping how and where data centers expand. Developers are increasingly embedding power considerations into site selection, shifting toward distributed infrastructure models and prioritizing regions with faster, more reliable access to electricity. As power availability becomes a […]
Article
The growing challenge of industrial R&D
For much of the 20th century, R&D was viewed as a long-term investment in scientific discovery, often insulated from day-to-day operational pressures. Success was measured in patents, breakthrough technologies, and the promise of future growth. Today, that view no longer holds. Across energy, chemicals, and broader industrial sectors, R&D has been reshaped by a combination […]
Article
IMO’s safety guidelines pave the way for ammonia-fueled ships
Ammonia has increasingly emerged as a potential low-carbon marine fuel to support decarbonization in the maritime sector due to its carbon-free combustion profile. However, compared to methanol, ammonia has lagged behind in commercial adoption as a low-carbon marine fuel. This is primarily due to its toxicity, which requires more complex storage and handling systems, as […]