Table of contents
- Recticel achieves strong double-digit growth in h1 2024
On August 30, 2024, Recticel, a leading manufacturer of polyurethane (PU) insulation panels in Europe, announced its earnings for the first half of 2024. The company recorded a 12.2% year-on-year increase in net sales, reaching EUR 299 million. Adjusted EBITDA surged by 37.9% year-on-year to EUR 25.1 million.
“While adverse weather conditions slowed down some construction projects in the first half, particularly in the residential sector, the commercial market has shown greater resilience. Recticel reported double-digit organic growth in both Insulation Boards and Insulated Panels,” the company stated in its report. CEO Jan Vergote highlighted that these results validate the company’s market-focused strategy. He added, “We are reducing costs in Insulation Boards while increasing volumes. The expansion of our Belgian and French plants is now operational, and we’re set to introduce 15 new insulation products over the next 18 months.” Recticel expects continued growth in the second half of 2024, with adjusted EBITDA likely to reach around EUR 50 million.
UK construction booms as Eurozone slows down
UK sector hits 26-month high following political shift
A survey conducted in July 2024 on construction activities across major European economies indicated a slowdown in the Eurozone, with Germany, Italy, and France seeing declines. However, the UK’s construction sector showed notable growth, driven by increased demand, marking the highest expansion in 26 months. The S&P Global UK Construction PMI rose to 55.3 in July 2024, up from 52.2 in June, largely due to a rebound in new orders following the conclusion of the UK’s general election, which resulted in Sir Keir Starmer’s Labour Party gaining power.
The UK construction industry’s three main sub-sectors all saw growth in July. New orders have expanded for six consecutive months, with subcontractor activity also rising steadily over the past four months. Construction managers attributed this growth to improved consumer confidence, which has helped resume paused projects.
European MDI suppliers hike prices for September
Tight supply and rising demand drive market upwards
BorsodChem: Following maintenance of its MDI facility from July 16 to September 2, BorsodChem announced a EUR 200/tonne price increase for its MDI in Europe for September.
Covestro: Covestro’s MDI facility in Brunsbüttel is scheduled for maintenance in September. Anticipating supply constraints in September and October, the company raised its MDI prices by EUR 150/tonne.
Huntsman: Despite resuming operations at its MDI facility in the Netherlands, Huntsman reported ongoing shortages in certain specifications, especially polymeric MDI, due to the need to rebuild inventories.
Dow & BASF: Both companies’ MDI facilities in Europe are operating normally, with no planned maintenance. However, they are closely monitoring the tightening supply among competitors and have noted the rising MDI prices in the September market.
China’s PMDI market gains momentum
Rising export orders and supply delays boost prices
In China, the PMDI market has seen strong upward momentum since early September. Prices have increased by over CNY 200/tonne, with the primary driver being a significant rise in export orders to Europe. Additionally, delays in the resumption of Wanhua Yantai’s MDI production have tightened supply further. As of September 6, mainstream PMDI prices in East China were CNY 18,000/tonne for Wanhua products, with other brands priced between CNY 17,700 and CNY 17,800/tonne. The expectation of stronger domestic demand during the “Golden September” period has also boosted the market.
