Asian Markets
February 26, 2021
Wanhua Completes MDI Expansion in Yantai
The Technical Transformation Of MDI Device Expansion Is Completed, And Yantai Wanhua Is Firmly Established As A Global Leader!
[Feb 26, 2021]
On the evening of February 24, 2021, Wanhua Chemical issued an announcement stating that Wanhua Chemical’s Yantai Industrial Park had an original production capacity of 600,000 tons per year for the MDI plant. Technical transformation and expansion of ton/year. The project obtained the project record certificate in June 2019, and the cumulative investment of 284 million yuan by February 2021. The successful technological transformation of this project will further enhance the company’s ability to serve customers.
Wanhua MDI’s global production capacity reached 2.6 million tons
Global market share is 28%
Wanhua’s Yantai MDI plant for this technological transformation and expansion belongs to the isocyanate integrated capacity expansion technological transformation project announced in the 2018 EIA and is the latest generation of technology. Compared with competitors, the capacity of a single device is generally only about 400,000 tons per year. Wanhua’s expanded device is the first device in the world to successfully achieve a single device capacity of 1.1 million tons per year.
The total investment of the project is 3.562 billion yuan, and the construction content includes:
MDI device (600,000 tons/year expansion to 1.1 million tons/year)
HDI and its adduct equipment (HDI 30,000 tons/year, HDI adduct 20,000 tons/year)
ADI equipment (HMDA and HMDI expanded from 10,000 tons/year to 20,000 tons/year
IPDI expanded from 15,000 tons/year to 30,000 tons/year),
Aniline plant (nitric acid plant 360,000 tons/year; nitrobenzene plant 48+240,000 tons/year; aniline plant 36+180,000 tons/year)
Hydrogen Chloride Plant (240 thousand tons/year)
HCL gas hydrochloric acid analysis device (226,000 tons/year) and supporting public works and auxiliary facilities
After the company’s Yantai MDI plant’s 500,000-ton/year technological transformation project is put into operation, its global production capacity will reach 2.6 million tons, with a market share of 28%, further consolidating its leading position in the polyurethane industry.
What is the impact of capacity expansion on MDI prices?
We expect that this expansion will be at the right time and will have little impact on MDI prices. Assuming that after the expansion of Wanhua’s capacity, the output elasticity is 200,000 to 400,000 tons/year, that is, the average monthly new output in the market is 16.67 to 33,300 tons. However, overseas production capacity is 1.06 million tons/year due to force majeure, with an average monthly gap of at least 35,000 tons. Even if the new capacity is fully opened, Wanhua cannot meet the supply gap. Huaan Securities predicts that the cold wave will affect the supply of MDI in the United States for 1-3 months. The force majeure will bring about 66,000 tons of new export demand. The total new demand in the next 10 months is about 199,000 tons, corresponding to the operating rate In the range of Wanhua Chemical’s theoretical operating rate, it has little effect on prices.
https://www.jecibiochem.com/news/the-technical-transformation-of-mdi-device-exp-42927529.html
February 26, 2021
Wanhua Completes MDI Expansion in Yantai
The Technical Transformation Of MDI Device Expansion Is Completed, And Yantai Wanhua Is Firmly Established As A Global Leader!
[Feb 26, 2021]
On the evening of February 24, 2021, Wanhua Chemical issued an announcement stating that Wanhua Chemical’s Yantai Industrial Park had an original production capacity of 600,000 tons per year for the MDI plant. Technical transformation and expansion of ton/year. The project obtained the project record certificate in June 2019, and the cumulative investment of 284 million yuan by February 2021. The successful technological transformation of this project will further enhance the company’s ability to serve customers.
Wanhua MDI’s global production capacity reached 2.6 million tons
Global market share is 28%
Wanhua’s Yantai MDI plant for this technological transformation and expansion belongs to the isocyanate integrated capacity expansion technological transformation project announced in the 2018 EIA and is the latest generation of technology. Compared with competitors, the capacity of a single device is generally only about 400,000 tons per year. Wanhua’s expanded device is the first device in the world to successfully achieve a single device capacity of 1.1 million tons per year.
The total investment of the project is 3.562 billion yuan, and the construction content includes:
MDI device (600,000 tons/year expansion to 1.1 million tons/year)
HDI and its adduct equipment (HDI 30,000 tons/year, HDI adduct 20,000 tons/year)
ADI equipment (HMDA and HMDI expanded from 10,000 tons/year to 20,000 tons/year
IPDI expanded from 15,000 tons/year to 30,000 tons/year),
Aniline plant (nitric acid plant 360,000 tons/year; nitrobenzene plant 48+240,000 tons/year; aniline plant 36+180,000 tons/year)
Hydrogen Chloride Plant (240 thousand tons/year)
HCL gas hydrochloric acid analysis device (226,000 tons/year) and supporting public works and auxiliary facilities
After the company’s Yantai MDI plant’s 500,000-ton/year technological transformation project is put into operation, its global production capacity will reach 2.6 million tons, with a market share of 28%, further consolidating its leading position in the polyurethane industry.
What is the impact of capacity expansion on MDI prices?
We expect that this expansion will be at the right time and will have little impact on MDI prices. Assuming that after the expansion of Wanhua’s capacity, the output elasticity is 200,000 to 400,000 tons/year, that is, the average monthly new output in the market is 16.67 to 33,300 tons. However, overseas production capacity is 1.06 million tons/year due to force majeure, with an average monthly gap of at least 35,000 tons. Even if the new capacity is fully opened, Wanhua cannot meet the supply gap. Huaan Securities predicts that the cold wave will affect the supply of MDI in the United States for 1-3 months. The force majeure will bring about 66,000 tons of new export demand. The total new demand in the next 10 months is about 199,000 tons, corresponding to the operating rate In the range of Wanhua Chemical’s theoretical operating rate, it has little effect on prices.
https://www.jecibiochem.com/news/the-technical-transformation-of-mdi-device-exp-42927529.html
February 22, 2021
Butanediol Price Surge in China
BDO market sees a booming start
Text size
| Price of BDO hiked after Lunar Chinese New Year. Bid price of BDO soared by around 35% to 22,050yuan/mt on Feb 18 from 16,300yuan/mt on Feb 1. The benefits behind price surge: Strong support from demand: most PTMEG plants run at full capacity or above 100% of capacity now, except for some plants that see supply tightness of feedstock. Sales ratio of BDO is high. Demand from GBL market is strong and buyers are forced to take high-priced feedstock to guarantee regular production. Operating rate of PBT market declined around the Spring Festival amid short feedstock and cautiousness on surging price. Demand from TPU market recovered before the Lunar Chinese New Year. PBAT units sustained production during holiday impacted by the ban on free plastic bags. The stimulus from overseas units: BASF Malaysia and Japan and Lycra US’s BDO units suspended production. Lyondell announced force majeure on BDO units in US and Europe. As a result, supply tightness intensified in Europe and US, which also tightened supply in China. With shorter supply, middlemen realty revised up bid price. Low stocks: plants that had turnaround in Jan sped up to restart after holiday. Suppliers focused on the term volumes or self-consumption, while little-to-no supply available for spot transactions. Sellers were reluctant to sell amid low stocks. BDO price soared after Spring Festival as expected. Market’s supply and demand fundamental remains bullish and BDO price sustains strong. However, such jump has exceeded the tolerance of downstream participants. https://www.ccfgroup.com/newscenter/newsview.php?Class_ID=D00000&Info_ID=2102209980004 |
February 22, 2021
Butanediol Price Surge in China
BDO market sees a booming start
Text size
| Price of BDO hiked after Lunar Chinese New Year. Bid price of BDO soared by around 35% to 22,050yuan/mt on Feb 18 from 16,300yuan/mt on Feb 1. The benefits behind price surge: Strong support from demand: most PTMEG plants run at full capacity or above 100% of capacity now, except for some plants that see supply tightness of feedstock. Sales ratio of BDO is high. Demand from GBL market is strong and buyers are forced to take high-priced feedstock to guarantee regular production. Operating rate of PBT market declined around the Spring Festival amid short feedstock and cautiousness on surging price. Demand from TPU market recovered before the Lunar Chinese New Year. PBAT units sustained production during holiday impacted by the ban on free plastic bags. The stimulus from overseas units: BASF Malaysia and Japan and Lycra US’s BDO units suspended production. Lyondell announced force majeure on BDO units in US and Europe. As a result, supply tightness intensified in Europe and US, which also tightened supply in China. With shorter supply, middlemen realty revised up bid price. Low stocks: plants that had turnaround in Jan sped up to restart after holiday. Suppliers focused on the term volumes or self-consumption, while little-to-no supply available for spot transactions. Sellers were reluctant to sell amid low stocks. BDO price soared after Spring Festival as expected. Market’s supply and demand fundamental remains bullish and BDO price sustains strong. However, such jump has exceeded the tolerance of downstream participants. https://www.ccfgroup.com/newscenter/newsview.php?Class_ID=D00000&Info_ID=2102209980004 |
February 19, 2021
Duties Imposed in India to Attract Domestic MDI Production
Indian ministry says petrochemical, polymer sectors to witness growth
20
Feb ’21
Pic: Shutterstock The increased outlay for healthcare and the fund for vaccination in the budget will boost polymer consumption with requirements of syringes and other polymer based healthcare products, and in general, the requirement of petrochemicals and polymers, required in a range of sectors, will also increase and boost domestic demand with increased government spending.
The roll out of the production-linked incentive (PLI) schemes for key end-use sectors will boost petrochemical consumption in the country, the ministry of chemical and fertilizers said in a press release.
Among the sectors earmarked, seven sectors—including mobile phone manufacturing, auto and components, medical devices, textile products—use significant quantity of petrochemicals. The estimated outlay of ₹1.41 lakh crores augurs well for the petrochemical industry growth, the ministry said.
The massive emphasis on infrastructure spending is expected to result in additional consumption of petrochemicals like polymers and specialty chemicals. Also, Agriculture focused measure like doubling of outlay for micro-irrigation to ₹10,000 crores will further fuel demand for polymer based irrigation products and services.
The synthetic industry has welcomed increase in import duty on raw cotton. This will support farmers to get better remuneration on cotton production and also eliminate cheap imports coming from neighboring countries. As such India is surplus of cotton and rather than exporting cotton.
Industry also welcomes increase in basic customs duty on silk and silk products. Synthetic Industry will be able to substitute silk products silk products by supplying silk like products out of synthetic fibres.
On methylene diphenyl diisocyanate (MDI), duty has been increased from zero to 7.5 per cent. It is used in the production of polyurethanes for many applications, like spandex yarn. The revised custom duty will attract investments in India given the rising demand of polyurethanes and presence of no domestic players.
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