January 15, 2025

Propylene Oxide in China

China Propylene Oxide & Polyols Market in January

PUdaily | Updated: January 14, 2025

In January 2025, due to the production of new facilities at Befar Group and Wanhua Chemical, these two suppliers in Shandong showed stronger intentions to clear inventory and cut prices by CNY 300/tonne. PO prices in East China dropped by CNY 100/tonne as a result. The price difference between the North and the South widened, leading to slightly varied sales performance. Meanwhile, recent import prices for PO have been continuously decreasing, with the latest offer at USD 990/tonne.

In terms of import, China’s import volume of PO has been declining in recent years and the annual import volume for 2024 is estimated to total 250 kT, marking a more than 20% decrease compared to the previous year.

As Chinese New Year approaches, downstream manufacturers are increasing purchases at relatively low prices, while the growth in new orders has been muted. Suppliers may maintain willingness to sell and negotiate. With ongoing inventory reduction, the market is projected to fluctuate slightly in the near future.

Prices for flexible slabstock polyols have moved down due to reduced costs. However, the drop in polyols prices is less than in PO prices, resulting in increased profits for polyols producers. Acrylonitrile prices have risen from CNY 9,400/tonne to CNY 10,500/tonne, causing a shrink in profits for polymer polyols. It is expected that the acrylonitrile market will remain high next week. Owing to limited supply increases and low inventories, coupled with the pre-holiday restocking blitz, the market is likely to keep resilient.

https://www.pudaily.com/Home/NewsDetails/53466

January 6, 2025

Chinese PMDI Overview

Will China’s PMDI Market Continue Its Upsurge in 2025?

PUdaily | Updated: January 3, 2025

On December 31, 2024, China’s PMDI market closed at a range of CNY 18,100-18,300/tonne, reflecting a remarkable increase of CNY 2,800/tonne (+18.2%) compared to the range of CNY 15,300-15,500/tonne at the end of December 2023. The average price of PMDI in China in 2024 stood at CNY 17,200/tonne, remaining basically same with the yearly average in 2022. The market price in 2024 indicated an upward trend. In December, as most suppliers had completed sales targets and halted or reduced deliveries, PMDI supply remained tight. Many distributors had no stock nor quotations, awaiting shipments from suppliers in the upcoming month.

In Supply Side

In 2024, PMDI suppliers’ pricing strategies and inventory management practices maintained PMDI social stocks at low levels.

In February, global oil prices increased during the Chinese New Year holiday, then China benzene market followed to increase, leading to increased PMDI production costs, pushing major MDI suppliers to raise list prices, then distributors followed to increase their quotations.

However, in late February, sudden severe cold weather across several regions in China delayed resumption of production and procurement for raw materials including PMDI in downstream sectors, leading to insufficient support for PMDI price increases. PMDI prices moved down in March.

In April, as it turned warmer, demand picked up gradually in construction sectors. but PMDI supply was relatively slow, leading to further depletion of spot inventories and a rebound in PMDI prices.

The uptrend continued during May and mid-June.

The market faced a marginal retreat due to off-season factors towards the end of June until August, and picked up again from September onwards.

In November and December, the price stabilized in the range of CNY 18,000-18,500/tonne.

In Demand Side

The downstream sectors for PMDI include home appliances, building insulation, cold chain logistics, transportation., etc. Home appliance is currently the largest downstream sectors of PMDI demand markets in China. Thanks to trade-in policies and leading home appliance companies’ ambitious actions on exploring overseas markets, both domestic sales and exports of refrigerators in China saw unexpected growths in 2024, contributing to ongoing increases in refrigerator production. The growth in international trade, the upturn in container shipping segment and incidents like Red Sea Crisis brought substantial orders for Chinese reefer container and LNG carrier manufacturers. In addition, Chinese PMDI exports from January to November 2024 rose by 11.5% year on year.

Looking ahead to 2025, suppliers’ pricing and inventory management are expected to maintain stable support to the market. In terms of demand, China set top of key tasks for 2025 at the Central Economic Work Conference as “vigorously boosting consumption, improving investment efficiency and expanding domestic demand on all fronts”. The conference prioritized supporting expanding domestic demand, particularly in consumer demand, which in turn will have a positive effect on industries like automobiles and home appliances. Furthermore, as 2025 marks the conclusion of China’s 14th Five-Year Plan (2021-2025), most market participants are observing the support given by the national and local governments in infrastructure projects. Despite market concerns about the risks associated with U.S. tariffs, which may impact on PMDI prices and export business of PMDI-based products from China to the U.S., Chinese PMDI market is projected to continue its upsurge driven by bullish factors in both supply and demand sides.

https://www.pudaily.com/Home/NewsDetails/53251

December 15, 2024

Tosoh to Expand Production Capacity to Meet Growing Demand for High-Performance Paint Hardeners

NEWS RELEASE

December 3, 2024

Tosoh to Expand Production Capacity to Meet Growing Demand for High-Performance Paint Hardeners

Tokyo, Japan—Tosoh Corporation plans to increase its production capacity for hexamethylene diisocyanate (HDI) derivatives at its Nanyo Complex in Shunan City, Yamaguchi Prefecture. The company markets its HDI derivatives under the Coronate brand.
HDI derivatives are advanced functional polyurethanes widely used as paint hardeners and are integral products in the company’s Specialty business portfolio. They are valued for their superb resistance to yellowing and weathering, which makes them essential as high-performance hardeners in automotive and architectural exterior coatings.

Tosoh’s expansion of its production capacity for HDI derivatives responds to the robust growth of the global coatings market, propelled by steady demand in developed economies, increasing demand in emerging markets amid heightened motorization, and rising demand in worldwide markets amid elevated infrastructure investments. Industry projections indicate growing demand for HDI derivatives.

The increase to HDI derivatives production capacity is thus a strategic move by Tosoh to position itself to capitalize on growing demand for and to ensure the stable supply of HDI derivatives. The company intends to significantly expand the scale of its business in HDI derivatives to increase corporate profitability. Tosoh, meanwhile, is committed to meeting the evolving needs of its customers and thus contributes to advancements in coating technologies for diverse industries.

November 18, 2024

MDI Capacity Expansion

Kumho Mitsui Chemicals Begins Operations at New MDI Production Facilities

2024.10.23

Mitsui Chemicals, Inc

Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) announced that affiliate Kumho Mitsui Chemicals Inc. (Seoul, South Korea; CEO: PARK Chan-Koo) has commenced operations late September at additional production facilities for methylene diphenyl diisocyanate (MDI).

Kumho Mitsui Chemicals’ Yeosu Plant

■Overview

MDI is a key raw material for polyurethane, a signature material used in numerous fields such as auto parts, bedding and furniture, insulation for homes and fridges, elastic fibers, and various adhesives. Demand for MDI is projected to grow at an annual rate of 6 percent going forward on account of policy measures around the globe to improve residential insulation as a means of global warming suppression, as well as due to the heightened demand accompanying economic growth.

Kumho Mitsui Chemicals manufactures and sells high-performance monomeric MDI and modified MDI used for making auto parts, elastic fibers and synthetic leather, as well as commodity polymeric MDI used for making insulation materials. The newly implemented capacity increase is intended to accommodate increased demand growth for high-performance MDI – employed primarily in electric vehicles for the purposes of noise, vibration and harshness (NVH) mitigation – as well as the existing demand growth for insulation materials.

In addition to expanding its production facilities, Kumho Mitsui Chemicals will install recycling facilities that can reuse the by-products created during the manufacturing process as raw materials. This will not only aid in significant cost rationalization by improving self-sufficiency for raw materials but will also reduce wastewater emissions from the plant and greenhouse gas emissions from the overall supply chain.

Kumho Mitsui Chemicals is aiming to become a global leader for MDI. With the capacity increase provided by these cutting-edge new facilities, Mitsui Chemicals will pursue both expansion of the MDI business – which is projected for continued growth moving forward – and further improvements to the performance of its MDI products.

■Overview of Kumho Mitsui Chemicals

https://jp.mitsuichemicals.com/en/release/2024/2024_1023/index.htm

November 13, 2024

Evonik Expands in China

Evonik breaks ground on specialty amine production in Nanjing

Shanghai, China/Essen, Germany. Evonik has officially broken ground on its plant expansion for specialty amines in Nanjing, during a ceremony attended by Nanjing government delegates on November 8.

• Strategic double-digit million euro investment boosts production and access to raw materials, fueling regional and global growth
• Plant expansion highlights commitment to polyurethane and epoxy markets, enhancing competitiveness
• New facility supports the introduction of new specialty amines to commercial scale starting 2026

Shanghai, China/Essen, Germany. Evonik has officially broken ground on its plant expansion for specialty amines in Nanjing, during a ceremony attended by Nanjing government delegates on November 8. This milestone underscores Evonik’s commitment to the development of the polyurethane and epoxy curing agent markets. The expansion at the existing production site strengthens Evonik’s presence in China, a vital region for the company’s global operations.

The expansion represents a strategic investment in the double-digit million euro range, allowing Evonik to enhance its amine portfolio by accessing cost-effective raw materials. By increasing production in China, Evonik strengthens its competitiveness and improves market efficiency, optimizing its production network. This expansion supports future market growth and aligns with Evonik’s global amine strategy to further differentiate its product offerings.

“The groundbreaking of our new specialty amines plant is testament to Evonik’s strategic focus on expanding our capabilities in Asia and our confidence in its potential. China’s role as a competitive production hub is pivotal for both our regional and global business strategies,” said, Dr. Claudine Mollenkopf, Head of Evonik’s Specialty Additives division. “This investment not only strengthens our position in the polyurethane and epoxy markets, but also highlights our commitment to sustainable growth and innovation.”

The Nanjing plant runs on green electricity and specializes in producing amine-based additives crucial for industries such as construction, automotive, and furnishings. These additives play a significant role as catalysts during polyurethane foam formation. Innovative catalysts also reduce odor and VOC emissions. In November 2023, Evonik signed a Letter of Intent with the Nanjing authorities to expand the plant with construction to be completed in 2026.

“The amine expansion project is key to our business, enabling us to continue serving our customers in the automotive, construction, furniture and consumer goods markets with high-performance amine-based additives,” said Roberto Vila-Keller, Head of the Comfort & Insulation business line. “By expanding our production capabilities in China, bolstering our other sites in Japan and Singapore, we are even better positioned to meet the increasing demand for sustainable polyurethane additives across the region.”

Evonik’s cooperation with the Nanjing government continues to flourish, as demonstrated by the successful groundbreaking ceremony attended by local government officials. This expansion aligns with Evonik’s strategy to enhance competitiveness by leveraging cost-efficient production locations in China.

https://www.evonik.com/en/news/press-releases/2024/11/evonik-breaks-ground-on-specialty-amine-production-in-nanjing–c.html