Huntsman's Q1 2025 Earnings Call: Navigating Contradictions in Supply Chains, MDI Pricing, and European Market Dynamics

Supply chain and inventory management, MDI pricing and demand, European market and strategic positioning are the key contradictions discussed in Huntsman's latest 2025Q1 earnings call.



Supply Chain Disruptions and Volume Volatility:
- Huntsman Corporation witnessed a significant disconnect between orders and downstream demand, resulting in double-digit drops in some order patterns compared to production volumes.
- This trend is attributed to uncertainties in the macroeconomy and supply chains, leading to panic and a focus on preserving working capital and reducing inventories.

MDI Market Dynamics and Tariffs:
- North American MDI tariffs have led to a significant reduction in imports, with March imports dropping by 60%, and only one kiloton of MDI entering from China in the first week of April.
- The implementation of tariffs and the resulting reduced imports are expected to have long-term impacts on the Americas, benefiting Huntsman's domestic production.

Geographic Market Variations:
- The company's operations in Europe are facing challenges due to low margins in maleic acid, exacerbated by imported products from countries like China and Russia.
- This is compounded by uncertainty in European industrial policy, which hinders investment decisions and impacts competitiveness.

Cost Management and Efficiency:
- Huntsman aims to doubling cost savings to $100 million, focusing on aligning costs with market realities, particularly in Europe.
- This strategy aims to enhance competitiveness and navigate a shrinking industrial base, especially given high energy costs and taxes.