Polyurethane industry shall maintain fairly fast growth rate

 

1. Polyurethane shall maintain the fairly fast growth rate, the supply/demand of three products shall be good for a long term. Polyurethane products are widely used in the fields of refrigerator, cold chain logistics, building and building material, auto, textile and clothing, shoe making, box and bag, new energy resource, electronic industry, etc. China is the country with fastest growth of output and demand of polyurethane in the world. It is predicted that during 12th Five Year Plan the growth rate of industrial demand shall be maintained at about 10%, wherein, the growth rate of hard polyurethane foam shall be fastest. As to supply/demand, three products standout: MDI, propylene oxide and MEK is fairly good in the next two years.

2. MDI: The production and consumption of MDI is shifted to China, with Yantai Wanhua as the main beneficiary. In the next two years the newly added demand of MDI in the world shall exceed 300,000t, wherein, 50% of them shall be from China. Yantai Wanhua leads the world in capacity expansion. The proportion of its capacity in the global capacity shall be increased to over 20% from 13%, and it shall become the biggest MID enterprise in the world. It is predicted that its market share shall be greatly increased.

3.Propylene oxide: In the next two years the gap of supply shall be widened continually. At present, the net import quantity of propylene oxide of China is about 300,000t with a fairly great gap. Since the chlorohydrin method is restricted by Chinese government, and the co-oxidation process is not yet matured in China, in the next two years there shall be no newly added capacity, while the capacity of downstream polyether is expanding rapidly. So it's fairly safe to say that the supply shall remain tight.