The European construction sector is showing strong signs of recovery at the start of 2025, driven by rising MDI prices, Germany’s €500 billion infrastructure plan, and peak season demand. Major chemical companies like Huntsman, Dow, and BorsodChem have raised MDI prices due to increasing production, energy, and logistics costs, with hikes ranging from €100/tonne to €250/tonne. These price increases reflect growing confidence in long-term demand recovery. Germany’s €500 billion infrastructure fund, to be invested over 10 years in transportation, energy, and digitalization, is expected to add 0.5% to Germany’s annual GDP growth from 2026, boosting market confidence. The STOXX 600 index rose 1.3%, and construction stocks gained over 5% following the announcement. The real estate sector is also recovering, with a projected 15% increase in investments in 2025, particularly in office spaces, luxury homes, and commercial real estate. This is expected to drive demand for high-performance insulation and green building materials made from MDI. The combination of policy support, growing demand, and technological advancements (like AI) positions the European construction sector for sustainable growth, with spring 2025 marking a pivotal moment in the transition to a new growth cycle.

Source: PUdaily