The Urethane Blog
February 11, 2026
Government Extends Anti-Dumping Duty on TDI Imports from EU, Saudi Arabia
Custom Duty | Notifications ADD, Notifications/Circulars The Ministry of Finance has issued Notification No. 03/2026-Customs (ADD) dated 10 February 2026, imposing anti-dumping duty on imports of Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20, classified under tariff item 2929 10 20, originating in or exported from the European Union and Saudi Arabia. The decision follows final findings of the designated authority dated 12 November 2025, which concluded that cessation of existing anti-dumping duty would likely lead to continuation of dumping and injury to the domestic industry.
Exercising powers under Section 9A of the Customs Tariff Act, 1975 and relevant rules, the Government has specified producer-wise duty rates ranging from US$ 102.05 to US$ 344.33 per metric tonne. The duty will remain effective for five years unless earlier revoked or amended and shall be payable in Indian currency based on the exchange rate notified under the Customs Act.
MINISTRY OF FINANCE (Department of Revenue) Notification No. 03/2026-Customs (ADD) | Dated: 10th February, 2026 G.S.R. 121(E).— Whereas, in the matter of “Toluene Di-Isocyanate (TDI) having isomer content in the ratio of 80:20” (hereinafter referred to as the subject goods) falling under tariff item 2929 10 20 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), originating in or exported from European Union and Saudi Arabia (hereinafter referred to as the subject countries), and imported into India, the designated authority in its final findings, published in the Gazette of India, Extraordinary, Part I, section 1 vide notification No. 7/14/2024-DGTR, dated the 12th November, 2025 has inter alia come to the conclusion that there is a likelihood of continuation of dumping and consequent injury to the domestic industry in case of cessation of anti-dumping duty in force, and has recommended continued imposition of anti-dumping duty on imports of the subject goods originating in or exported from the subject countries.
Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 and in supersession of the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 28/2021-Customs (ADD), dated the 27th April, 2021, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 297(E), dated the 27th April, 2021, except as respects things done or omitted to be done before such supersession, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entry in column (2), originating in the countries as specified in the corresponding entry in column (4), exported from the countries as specified in the corresponding entry in column (5), produced by the producers as specified in the corresponding entry in column (6), and imported into India, an anti-dumping duty at the rate equal to the amount specified in corresponding entry in column (7), in the currency as specified in the corresponding entry in column (9) and as per the unit of measurement as specified in the corresponding entry in column (8) of the said Table, namely:−
Customs classification is only indicative and not binding on the scope of the subject goods. ** The subject goods in the present investigation concerns TDI having isomer content in the ratio of (80:20). All other grades are beyond the scope of subject goods. 2.
The anti-dumping duty imposed under this notification shall be effective for a period of five years (unless revoked, superseded, or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency.
Explanation. – For the purposes of this notification, the rate of exchange applicable for the purposes of calculation of such anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Act. [F. No. 190349/6/2026-TRU] DHEERAJ SHARMA, Under Secy.
Read more at: https://taxguru.in/custom-duty/government-extends-anti-dumping-duty-tdi-imports-eu-saudi-arabia.html
February 4, 2026
Henkel to buy specialty coatings company Stahl in €2.1B deal
Feb. 04, 2026 7:02 AM By: Carl Surran, SA News Editor
Henkel said Wednesday it agreed to acquire Netherlands-based specialty coatings company Stahl Holdings for €2.1B (~$2.48B) including debt from private equity firm Wendel.
The German consumer goods company said the acquisition will help drive growth in its adhesive technologies business.
Minority shareholders BASF and Clariant, which together control more than 30% of Stahl, also will sell their stakes, Wendel (WNDLF) said.
Henkel’s deal for Stahl comes after the company recently said it would acquire ATP Adhesive Systems.
Executives have predicted a wave of consolidation in the chemicals industry, as companies struggle with weak demand, rising energy costs, tariffs and intense competition.
February 2, 2026
Covestro expands TDI production capacity in Shanghai to 370,000 tons, strengthening competitiveness amid global supply tightening.
2026-02-02 14:03:09Source:ChemNet中文
On January 30, Covestro announced the completion of a major capacity expansion and upgrade of the toluene diisocyanate (TDI) production facility at its Shanghai integrated site. The annual TDI production capacity increased from 310,000 tons to 370,000 tons, a nearly 20% increase, further strengthening its supply capabilities in the Asia-Pacific region.
Covestro’s Shanghai integrated site is located in the Shanghai Chemical Industry Park and is the company’s largest production base globally. This expansion did not involve building new production lines but was achieved by optimizing existing production processes and infrastructure, resulting in significant output growth without additional land or major equipment investments.
Covestro Continues to Enhance Competitiveness in the TDI Sector
In March 2025, its largest TDI plant in Europe, located in Dormagen, Germany, completed a modernization upgrade. With an annual capacity of 300,000 tons, the core of the upgrade focused on energy recycling, reducing energy consumption by 80% compared to traditional processes and cutting annual CO2 emissions by 22,000 tons. This not only strengthened its competitiveness in high-energy-cost markets but also provided customers with TDI products with a lower carbon footprint.
In early 2026, the global TDI market experienced a concentrated contraction in supply. In January, global TDI plant shutdowns for maintenance totaled 860,000 tons, accounting for 24% of global production capacity. This included temporary shutdowns at Hanwha in South Korea and Wanhua’s Xinjiang facility, compounded by previous maintenance and abnormal fluctuations at major plants such as Covestro Shanghai and Wanhua Fujian, leading to a widening global supply gap.
Tight Supply in the TDI Market
From January 12 to 22, Wanhua Chemical’s TDI distributor price was set at 15,200 RMB/ton. Due to the ongoing shutdown of the Northwest plant, there was no supply from Northwest sources during this period. A major Shanghai manufacturer adjusted its TDI price to 14,400 RMB/ton, with tight supply and limited quantities available.
China’s TDI Exports Hit a Record High in 2025
Import and export data show that China’s TDI exports reached a historic high in 2025, with total annual exports reaching 556,500 tons and cumulative imports of only 3,400 tons. In December, exports were 50,200 tons, with imports of 140 tons; in November, exports reached 56,500 tons, setting a record for monthly exports, while imports were 460 tons. China’s TDI supply is highly self-sufficient, with exports playing a dominant role.
February 1, 2026
2 Foreign Cos. Escape Pa. Polyurethane Price-Fixing MDL
By Lauren Berg · Listen to article
Law360(January 29, 2026, 8:23 PM EST)– A Pennsylvania federal judge on Thursday unsealed his opinion from earlier this month dismissing two parent companies in Germany and China from multidistrict antitrust litigation that accuses several companies of conspiring to manipulate the prices of two chemicals used to make polyurethane, saying the court doesn’t have jurisdiction.
After the parties agreed it could be unsealed, U.S. District Judge W. Scott Hardy made public his Jan. 8 opinion granting renewed motions to dismiss by Covestro AG, headquartered in Leverkusen, Germany, and Wanhua Chemical Group Co. Ltd., headquartered in Yantai, China, agreeing that his court “is unable to exercise general or specific personal jurisdiction over” the foreign parent companies.
“In the court’s estimation, plaintiffs fail to establish that Covestro AG and Wanhua China had sufficient minimum contacts evidencing they do business in the United States to be ‘found’ here, nor do they establish that these defendants availed themselves of the privileges of American law or otherwise reasonably could anticipate being involved in litigation in the United States,” the judge said.
Judge Hardy dismissed the claims against Covestro AG and Wanhua China with prejudice, but the companies’ domestic subsidiaries, Covestro LLC and Wanhua Chemical America Co. Ltd., remain in the case.
The Pittsburgh-based multidistrict litigation accuses several companies — including BASF Corp., The Dow Chemical Co. and Huntsman Corp. — of using plant closures and limited supplies to drive up the prices of methylene diphenyl diisocyanate and toluene diisocyanate.
The class action generally alleges that the chemical companies reacted to a period of low MDI and TDI prices in 2014 and 2015 by limiting production and artificially inflating the prices for manufacturers of polyurethane plastic products, including plaintiffs such as Rhino Linings Corp. and Elliott Co. of Indianapolis.
According to the complaints, the defendant companies conspired through trade groups and took advantage of the difficulty that competitors would face when entering the market for the chemicals, known as diisocyanates and isocyanates, along with their control over most of the supply and the fact that the chemicals can’t be replaced with substitutes.
In March 2020, U.S. District Judge Donetta Ambrose denied the defendants’ joint motion to dismiss the case, finding the allegations in the complaint were sufficiently supported to move the case ahead. She also denied a motion to dismiss for lack of jurisdiction brought by foreign-based corporations BASF SE, Covestro AG, Mitsui Chemicals, MCNS and Wanhua China.
But following jurisdictional discovery, Covestro AG in July 2022 and Wanhua China in February 2023 renewed their motions to dismiss for lack of jurisdiction, and Judge Hardy granted both on Jan. 8, according to the docket.
In his opinion, unsealed Thursday, Judge Hardy first determined that the “foreign corporations with a headquarters and a principal place of business in other countries are not ‘at home’ in the United States,” meaning his court cannot exercise general personal jurisdiction over the companies.
The court also doesn’t have specific personal jurisdiction over Covestro AG and Wanhua China under both the traditional three-step analysis known as the “minimum contacts” test or under the “Calder effects test” laid out in the 1984 U.S. Supreme Court case Calder v. Jones , which can be used when an intentional tort is alleged, the order said.
“As to both Covestro AG and Wanhua China, the record makes clear that personal jurisdiction does not lie under the traditional test because neither foreign defendant ‘purposefully availed itself of the privilege of conducting activities’ in the United States,” Judge Hardy said, noting that neither company has manufactured or sold MDI or TDI in the U.S.
Turning to the Calder test, Judge Hardy determined that the plaintiffs have not alleged the crucial third factor — that Covestro AG and Wanhua China “expressly aimed tortious conduct at the United States such that it can be said to be the focal point of the tortious activity,” according to the order.
“Given that Covestro AG is a German holding company which does not manufacture or sell MDI or TDI, or otherwise perform any operational functions … it strains credulity that it expressly aimed the tortious conduct at issue here at the United States,” Judge Hardy said.
As for Wanhua China, the plaintiffs “inaccurately contend” that the company is involved in setting a floor price for sales of MDI through its American subsidiary and that it controlled the subsidiary by having Wanhua China members on the subsidiary’s board of directors, the order states.
The judge also rejected the plaintiffs’ argument that Wanhua China’s announcement and subsequent cancellation of an MDI plant in the U.S. “would have constrained the market by boosting supply expectations and then not delivering,” according to the order.
“Plaintiffs’ purely speculative argument on this point is wholly insufficient to establish Calder’s express aiming prong,” Judge Hardy said, likewise rejecting the plaintiffs’ “contention that Wanhua China engaged directly with United States customers by attending meetings, hosting visits at its plant in China, or engaging with them on technical issues and providing updates on research and development” would establish that it expressly aimed tortious conduct at the U.S.
The judge also rejected the plaintiffs’ argument for express aiming based on their claim that Wanhua China shipped diisocyanates into the U.S., saying in the opinion that this argument “obscures the fact that although the vast majority of the MDI that [Wanhua Chemical America Co.] sells in the United States comes from Wanhua China, WCA, not Wanhua China, sells MDI and TDI” to U.S. customers.
“Even in instances where WCA offered ‘China Direct’ shipping for customers to save on overall supply chain logistics and costs, customers contracted and interacted with WCA, not Wanhua China,” the judge said.
Craig Seebald of Vinson & Elkins LLP, an attorney for Wanhua, told Law360 Thursday, “We are pleased with the court’s decision and its thorough consideration of the jurisdictional record. With the jurisdictional motion decided, we can move forward with the litigation and look forward to filing our summary judgment motion.”
Counsel for the plaintiffs and Covestro did not immediately respond to requests for comment.
The plaintiffs’ interim co-lead counsel are Megan E. Jones of Hausfeld LLP and Jason S. Hartley of Hartley LLP, and their interim liaison counsel is William Pietragallo II of Pietragallo Gordon Alfano Bosick & Raspanti LLP.
Wanhua is represented by Craig P. Seebald, Adam Hudes, Brian Schnapp, Charles L. Wesley and Nicole Castle of Vinson & Elkins LLP.
Covestro is represented by John F. Terzaken, Abram J. Ellis and Avia Gridi of Simpson Thacher & Bartlett LLP.
The case is In re: Diisocyanates Antitrust Litigation, case number 2:18-mc-01001, in the U.S. District Court for the Western District of Pennsylvania.
January 29, 2026
Dow Inc. (DOW) Q4 2025 Earnings Call Transcript
Jan. 29, 2026 12:32 PM ETDow Inc. (DOW) Stock
Dow Inc. (DOW) Q4 2025 Earnings Call January 29, 2026 8:00 AM EST
Company Participants
Andrew Riker – Vice President of Investor Relations
James Fitterling – Chairman & CEO
Karen Carter – Chief Operating Officer
Jeffrey Tate – Chief Financial Officer
James Fitterling
Chairman & CEO
Thank you, Andrew. Beginning on Slide 3. Team Dow continued to execute with discipline during a year marked by persistent macroeconomic challenges and trade and policy volatility as well as anticompetitive behaviors by certain industry players. In the face of external pressures, we managed what was within our control.
Our fourth quarter operating EBITDA was $741 million, reflecting an expected sequential decline from lower seasonal demand and typical margin compression across many end markets.
Looking across 2025, we accomplished several impactful near and longer-term milestones, all while the market wasn’t providing many tailwinds.
We identified more than $6.5 billion in near-term cash support items and delivered well over half in 2025, including the accelerated delivery of our in-year cost savings from our $1 billion cost out program.
And we further strengthened our global manufacturing footprint. This includes our announced plans to shut down upstream high-cost assets as well as the completion of our remaining incremental growth investments, which serve downstream higher-value markets that are growing above GDP.
We were also once again recognized as one of the world’s best workplaces. This reflects direct feedback from our employees about the culture and talent that continues to drive Dow forward.
As we move into 2026, we recognize that many markets are fundamentally shifting. Geopolitical dynamics, rapid advances in AI and automation and economic volatility require new breakthrough approaches, greater agility and continued technological adoption. That’s why we announced our Transform to Outperform program earlier today. This work builds on our track record of taking proactive measures to help Dow, and it represents a fundamental change in how we will operate and serve our customers. We believe this will strengthen our long-term competitive position through every part of the economic cycle.
And lastly, we have finalized a value-maximizing path forward for our Path2Zero project in Fort Saskatchewan. We’ll share more details on all of this later in the call. But before that, Karen will cover our fourth quarter operating segment performance.
Karen Carter
Chief Operating Officer
Thank you, Jim, and good morning to everyone joining today. Dow cost savings measures gained significant traction across every business in the second half of 2025, which is reflected in our fourth quarter performance. Despite continued industry pressures, we are delivering on our commitments and self-help actions.
Next, turning to our Industrial Intermediates & Infrastructure segment on Slide 5. Overall demand for industrial applications remain challenged, which continues to pressure the industry and our businesses. Net sales for the segment were $2.7 billion, down 9% versus the same period last year.
Sequentially, net sales decreased 5%, mainly due to lower local prices and seasonally lower building and construction volumes. Volume decreased 1% year-over-year, primarily driven by lower volumes in polyurethanes and construction chemicals. This was partly offset by higher than typical seasonal demand for deicing fluids which have continued into 2026.
Operating EBIT decreased $285 million versus the same quarter last year and $154 million sequentially, driven by lower integrated margins. Our cost savings in both businesses helped offset some of the decline.
We also completed the shutdown of our higher-cost upstream propylene oxide unit in Freeport, Texas, rationalizing approximately 20% of North American PO industry capacity.
Jeffrey Tate
Chief Financial Officer
Thank you, Karen. Good morning to everyone participating on today’s call. Slide 7 shows that across the broader macroeconomic landscape, there are mixed signals in several of our end market verticals and key geographies. Recent developments are showing some encouraging signals in response to structural industry challenges as well as trade and tariff uncertainties.
This includes several announcements of further ethylene capacity rationalization as well as the elimination of VAT export rebates on select products in China.
Across the infrastructure sector, building and construction conditions are likely to gradually improve as interest rate cuts over the past 12 months gain traction. Housing starts and existing home sales remain well below historical averages, but there are some signs of positive momentum with existing home sales increasing for 4 months in a row. Consumer confidence has improved slightly but remains near historic lows, continuing to weigh on overall demand. At the same time, U.S. retail spending is holding steady in several categories with resilient sales of electronics as a bright spot.
Moving to Industrial Intermediates & Infrastructure. We expect normal seasonal improvements in building and construction end markets. Additionally, positive demand momentum for deicing fluids should continue into the first quarter, providing a tailwind for the segment. Our cost savings efforts will provide an additional $10 million tailwind, while approximately $15 million for planned maintenance activity throughout the quarter is expected to offset these gains. And in the Performance Materials & Coatings segment, we anticipate typical seasonal improvements for Architectural Coatings as well as higher siloxane pricing following the increased market prices that happened in China late last year. Collectively, this will provide roughly $80 million of sequential tailwinds this quarter.
James Fitterling
Chairman & CEO
Thank you, Jeff. Slide 9 outlines the key areas where we’re focused on strengthening Dow’s earnings power to ensure that we remain resilient through every cycle. First, we expect to deliver the remaining more than $500 million in cost savings by the end of this year from our previously announced $1 billion program. We’re also executing a series of strategic moves that will uniquely position Dow to win. This includes the start-up of our remaining incremental growth investments in cost-advantaged regions as well as our announced shutdowns of upstream higher-cost assets.
Additionally, Transform to Outperform is expected to deliver at least $2 billion in near-term EBITDA improvement. About 2/3 of that will come from productivity gains and the remaining 1/3 from growth. This work will radically simplify how we operate, streamline our end-to-end processes, reset our cost structure and modernize how we serve our customers. We anticipate the outcomes to deliver step change improvements in productivity, more growth with our customers and greater shareholder returns.
Kevin McCarthy
Vertical Research Partners, LLC
Your II&I segment trended a little bit weaker than I think you and I both expected 2 or 3 months ago. So maybe a 2-part question. Can you talk about the variances that manifested in that segment versus your prior expectations? And then the second part would be on polyurethanes. I think in the past, you had discussed the strategic review of that business. Is there any update on the efforts there? Is it active or dormant? I appreciate any color there.
James Fitterling
Chairman & CEO
Karen, do you want to touch on II&I and then I can come back on polyurethanes.
Karen Carter
Chief Operating Officer
Sure. In the fourth quarter, we did see normal seasonal demand declines, particularly in the building and the construction market. And the reality is that, that market just continues to be under pressure, not just domestically, but around the world. And of course, that is putting down more pressure on pricing. But also, if you think about housing, if you think about automotive, those markets are just weak around the world.
And so as we went into fourth quarter, we saw that we had some lower fixed costs as well as lower planned maintenance, but the building and construction end markets and durables just really offset that.
And we think about first quarter, we do expect to see some modest seasonal demand improvements and also tailwinds from cost actions. But we have a bit of planned maintenance that’s going to offset that and again, just continued downward pressure, particularly in the building and construction market.
James Fitterling
Chairman & CEO
On Polyurethanes, we continue to look for the best options, Kevin, on a go-forward basis for the Polyurethanes franchise. We’re obviously making a lot of changes. We noted that we took out 20% of North American PO capacity at the end of first quarter. So we’re having some rationalization in the industry on higher cost assets to kind of address the oversupply situation there. I would say, additionally, the team has been very busy on the trade front. I mentioned anticompetitive practices before, but Europe, especially has been hit very, very hard from dumping of material into the European continent. And this comes from regions that don’t have any particular cost advantage to bring it in.
And so we’ve seen some actions, I think, are going to have positive impact. In China, for example, the announcement that the 13% duty drawback for exports out of China is going away; at the end of first quarter in April, I believe, is when it goes away. So there were companies that don’t have the cost position to be able to export under free trade, fair trade rules that were getting 13% duty drawbacks for all their exports. That’s going to go away. And you’ve got a whole host of cases on antidumping that are starting to take hold. There’s been more traction in the Americas than there has been in Europe. Europe is a bit slower to respond, but it is on the radar screen and it is getting attention in Europe.
Patrick Fischer
Goldman Sachs Group, Inc., Research Division
Maybe I can sneak in 2. First one, I believe Sadar is up for its debt refi midyear this year. So can you just give us some details about operationally, how Sadara is looking? And what does that debt refi mean for Dow? And then just the second one is, you gave us $1 billion on the Canada project at mid-cycle. What would that project be making in today’s environment?
James Fitterling
Chairman & CEO
Yes, on Sadara, we continue to keep a close eye on Sadara it’s running safely and reliably. I’d say we had one small incident at the cracker this year. But the assets are in a good position on the global cash cost curve. Most of it has been around the financial structure. And Dow and Aramco are conducting an ongoing strategic review of Sadara, which is targeted to be completed during the first half of 2026.
The JV obviously operates very safely and very reliably. And we’ll look at the — and evaluate the opportunities to enhance the long-term resilience of the joint venture. I don’t anticipate any cash payments to Sadara lenders in 2026. Sadara has got ample liquidity through their facilities and including some that they utilized in the fourth quarter. And of course, Dow and Aramco have support behind that, bearing guarantees behind that.
Yes. Frank, it’s a good question. And I just want to make sure that we’re clear that it’s not all AI. So there are also going to be some fundamental changes. We’re going to look at all of our integrated work processes from end to end and simplify those. So for example, in previous changes, we’ve looked at trimming third-party costs. We’ve looked at — obviously, always look at procurement and what we can do to do better procurement and bring costs down for what we pay out to third parties.
But in this case, we’re looking at how things are built into our system and how we do our work end-to-end and how can we take steps out, how can we automate things that are done either manually or handoffs within the system to date. And AI is going to give us a lot of possibilities there. Over the last couple of years and in the first — we had not in 2025, but we had $1 billion cost-out program before that. And some of the money from that program actually went into digital capabilities and IT.
So one of the things that we have is we have a lot of high-quality data. We’ve got an intelligent data hub that we’ve built inside the company that AI on top of that will allow us to take a look at these work processes and really take steps out and streamline the whole thing. So we call it a reengineering or a rewiring of the way we do business globally. And then that can be baked into the system and automated. And that’s one of the ways we’ll keep cost out as we go forward.
We’re seeing progress in many functions right now. Many different functions are using AI in ways that are speeding things up or reducing the cost to do things. We see it in legal, for example, patent research work. I’m doing discovery on cases on legal; there is a big cost savings there. We’re seeing it in a lot of other applications. So I think it’s going to be there. And we haven’t really started to get into yet robots and AI and robotics together. I think at some point, we will.
On traditional AI, we’ve seen great progress, obviously, from using technology to make things safer and eliminate certain costs from turnarounds and things like cost of scaffolding is a big cost in a turnaround by using drones and crawlers with cameras and other kinds of technologies, we can eliminate big costs out of having to scaffold parts of plants to go in and do those turnarounds. So they’re real numbers, and we’re pretty confident that we can bring it to all of that to the bottom line.
On the growth side, also be some refocus on where we have our people position. I would say the focus will be on still boots on the ground on the sales side, sales, tech service application development. Our model is you’ve got to be at the design table with your customers, and you got to be on the ground to do that. So we’ll look at how those are deployed. Are they in the right geographies and the geographies that are growing and then how we support that from behind the scenes inside the shop, see what we can do to automate to help them and bring better data to their fingertips.
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