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Insulating your home will become significantly more expensive due to a shortage of MDI, one of the most important basic materials of insulation.
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All suppliers of insulation materials active on the Belgian market (Unilin, Kingspan, Recticel, Ikon …) are currently informing their customers: they will adjust their prices during the month of September, or at the latest in October. “We cannot do otherwise. We are all faced with a sharp increase in demand for MDI (methylene diphenyl diisocyanate), the main feedstock for the manufacture of these insulating materials, “says Lieven Malfait, director of the insulation division at Unilin. He does not rule out further price increases. MDI represents approximately 70% of the cost price of insulation products.
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The price per m2 of insulation had fallen to 12.60 euros, it now goes back to more than 14.10 euros per m2.
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MDI is produced by only a handful of manufacturers around the world. And its price fluctuates significantly. After years of stability, at about 1.60 euro per kilo, he had peaked three years ago, at 2.5 euros per kilo, following a strong demand and a too low supply. Since then, it had fallen sharply, thanks to additional production capacities and the search for alternatives by certain architects. He had fallen to 1.20 euros per kilo at the start of the year. “For the end customer, the price per square meter of insulation had dropped to 12.60 euros, or 43% less than during the peak of September 2017 “, explains André De Groote, wholesaler and president of Fema, the professional federation of traders in building materials.
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But now it goes back more than 14.10 euros per m2. André De Groote underlines that there is no question of a general increase in construction materials, even if there is a drought supplement for the bulk goods which are transported by waterway, given the low water level .
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The question is whether this price increase heralds others. Some experts expect a conjunction of negative factors that could lead to further price increases for MDI from 20 to 30% in September.
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