February 2, 2026

Covestro Expands TDI in China

Covestro expands TDI production capacity in Shanghai to 370,000 tons, strengthening competitiveness amid global supply tightening.

2026-02-02 14:03:09Source:ChemNet中文

On January 30, Covestro announced the completion of a major capacity expansion and upgrade of the toluene diisocyanate (TDI) production facility at its Shanghai integrated site. The annual TDI production capacity increased from 310,000 tons to 370,000 tons, a nearly 20% increase, further strengthening its supply capabilities in the Asia-Pacific region.

Covestro’s Shanghai integrated site is located in the Shanghai Chemical Industry Park and is the company’s largest production base globally. This expansion did not involve building new production lines but was achieved by optimizing existing production processes and infrastructure, resulting in significant output growth without additional land or major equipment investments.

Covestro Continues to Enhance Competitiveness in the TDI Sector

In March 2025, its largest TDI plant in Europe, located in Dormagen, Germany, completed a modernization upgrade. With an annual capacity of 300,000 tons, the core of the upgrade focused on energy recycling, reducing energy consumption by 80% compared to traditional processes and cutting annual CO2 emissions by 22,000 tons. This not only strengthened its competitiveness in high-energy-cost markets but also provided customers with TDI products with a lower carbon footprint.

In early 2026, the global TDI market experienced a concentrated contraction in supply. In January, global TDI plant shutdowns for maintenance totaled 860,000 tons, accounting for 24% of global production capacity. This included temporary shutdowns at Hanwha in South Korea and Wanhua’s Xinjiang facility, compounded by previous maintenance and abnormal fluctuations at major plants such as Covestro Shanghai and Wanhua Fujian, leading to a widening global supply gap.

Tight Supply in the TDI Market

From January 12 to 22, Wanhua Chemical’s TDI distributor price was set at 15,200 RMB/ton. Due to the ongoing shutdown of the Northwest plant, there was no supply from Northwest sources during this period. A major Shanghai manufacturer adjusted its TDI price to 14,400 RMB/ton, with tight supply and limited quantities available.

China’s TDI Exports Hit a Record High in 2025

Import and export data show that China’s TDI exports reached a historic high in 2025, with total annual exports reaching 556,500 tons and cumulative imports of only 3,400 tons. In December, exports were 50,200 tons, with imports of 140 tons; in November, exports reached 56,500 tons, setting a record for monthly exports, while imports were 460 tons. China’s TDI supply is highly self-sufficient, with exports playing a dominant role.

https://news.chemnet.com/news-1713.html

January 13, 2026

China Reducing VAT Rebate for Exports of Polyol

Export Tax Rebate Adjustment on Photovoltaic Products & Polyether Polyols

PUdaily | Updated: January 12, 2026

For the polyurethane industry, the update is particularly relevant because it captures product classifications that may apply to polyether materials commonly traded as polyether polyols (depending on the exporter’s declared HS code and customs classification). As a result, affected exporters may face higher effective export costs after April 1, 2026, which could translate into adjustments in export offers and contract pricing discussions.

Market participants should monitor potential impacts on export netbacks and shipment planning. As rebate removal typically increases the effective export cost for in-scope products, exporters and buyers may also reassess shipment schedules and commercial terms ahead of the implementation date where feasible.

https://www.pudaily.com/Home/NewsDetails/61866

Key Policy Shift: China’s Polyether Polyols VAT Export Rebates Cancelled from April 2026

Taylor liu

Sales Specialist-ECHEMI Group

January 13, 2026

China’s Ministry of Finance and State Taxation Administration have announced the removal of VAT export rebates for polyether polyols (HS 39072990), effective April 1, 2026. This marks a pivotal moment for an industry where export dependency has reached ~33%, with 2026 exports projected at 2M tons.

The change will reshape competitiveness in global markets and accelerate strategic reviews across the polyether-PO value chain.

Propylene Oxide (PO): A Short-Term Demand Pulse

A short-term demand surge is expected as exporters accelerate orders pre-deadline. While current PO operating rates are high, the demand pulse may tighten availability. PO prices have already begun rising (up ~RMB 200/ton in Jiangsu), with further increases anticipated.

Downstream Ripple Effect: Cost pressure will extend to key PO derivatives.

• Propylene Glycol (PG)
• Propylene Carbonate (PC)
• Dimethyl Carbonate (DMC)

Looking Ahead: With over 2.5M tons of new polyether and PO capacity scheduled through 2028—including multiple 2026 startups—the industry faces both policy-driven restructuring and expanding supply.

#PolyetherPolyols #PropyleneOxide #ChemicalIndustry #ExportPolicy #ChinaMarket #PG #PC #DMC #SupplyChain

Views are personal and not those of the company.

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January 9, 2026

India ADD on Flexible Polyol

India Extends Anti-Dumping Duty on Saudi, UAE Flexible Polyol

PUdaily | Updated: January 8, 2026

The Government of India has extended the existing anti-dumping duty on imports of Flexible Slabstock Polyol of molecular weight 3000–4000 originating in or exported from Saudi Arabia and the United Arab Emirates until 17 June 2026, the Ministry of Finance said in a notification issued on Friday.

The extension has been notified through Notification No. 01/2026-Customs (ADD), published in the Gazette of India, Extraordinary. The duty was originally imposed in April 2021 to address injury to the domestic industry caused by dumped imports.

The decision follows a sunset review initiated by the Directorate General of Trade Remedies (DGTR) on 18 March 2025 under Section 9A (5) of the Customs Tariff Act, 1975, read with Rule 23 of the Anti-Dumping Rules, 1995. The designated authority had recommended continuation of the duty pending completion of the review.

Accordingly, the Central Government has amended Notification No. 20/2021-Customs (ADD) to provide that, notwithstanding the original expiry date, the anti-dumping duty shall remain in force up to and inclusive of 17 June 2026, unless revoked, superseded, or amended earlier.

Flexible Slabstock Polyol, classified under Customs Tariff Heading 3907 29, is a key raw material used in the manufacture of polyurethane foams, with applications across furniture, bedding, and automotive sectors.

The extension is intended to ensure continued protection to the domestic industry against unfair pricing practices while the sunset review process is underway.

https://www.pudaily.com/Home/NewsDetails/61822

January 5, 2026

Hanwha TDI Update

Hanwha TDI Temporary Shutdown in South Korea

PUdaily | Updated: January 4, 2026

Market sources indicate that Hanwha’s 150,000 tpa TDI plant in South Korea has been temporarily shut down starting from January 2 due to feedstock shortages. The outage is preliminarily expected to last until January 9.

https://www.pudaily.com/Home/NewsDetails/61667

December 15, 2025

Kumho Mitsui to Increase MDI Capacity

Kumho Mitsui Chemicals to Increase Capacity of MDI Production Facilities

Ensuring a steady supply of high-performance materials for mobility and housing

2025.12.15

Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: HASHIMOTO Osamu) today announced that affiliate Kumho Mitsui Chemicals Inc. (Seoul, South Korea; CEO: PARK Chan-Koo) has decided to further increase the capacity of its production facilities for methylene diphenyl diisocyanate.

Overview of capacity increase

MDI is a key raw material for polyurethane, widely used in automotive parts, furniture and bedding, insulation for homes and refrigerators, elastic fibers, and various adhesives. Demand for MDI is projected to grow at an annual rate of 5 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, modified, and high-viscosity polymeric types of MDI used for making auto parts, elastic fibers, and highly flame-retardant insulation materials, as well as commodity polymeric MDI used for making housing and home appliance insulation. The facility is already operating at full capacity following a 200,000-ton capacity increase in 2024. With this new capacity increase, Kumho Mitsui Chemicals will be able to accommodate growing demand for not only automotive materials, but also the high-performance MDI used in flame-retardant insulation materials.

Furthermore, this move will make full use of the recycling facilities introduced during the previous 200,000-ton capacity increase, reducing GHG emissions per unit of MDI produced. Through these efforts, Kumho Mitsui Chemicals aims to simultaneously reduce the plant’s carbon footprint while improving energy efficiency, thereby contributing to cost rationalization and the establishment of a sustainable production system.

Kumho Mitsui Chemicals is aiming to become a global leader for MDI. With this capacity increase, Mitsui Chemicals will pursue both expansion of the MDI business – which is projected for continued growth going forward – and further improvements to the performance of its MDI products.

Overview of Kumho Mitsui Chemicals

https://jp.mitsuichemicals.com/en/release/2025/2025_1215_1/index.htm