“The decision to cut production or increase prices has to do with current storage levels and whether the end market is willing to pay the price… Apparently, polyurethane consumers can eat the margin.”
thecolumn.co/daily/09242021
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Nice unusual supply chain dynamics example. Natural gas prices are up. Ammonia producers are cutting production because fertilizer makers are less willing to pay premium. But makers of MDI, that goes into polyurethane, are raising prices.
I guess packaging demand is inelastic.
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Though I think polyurethane is used for other stuff too.
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