Chinese MDI Export Overview

PUdaily, Shanghai-The year of 2017 was half gone and now PUdaily will take you to review the China MDI export performance in the first half of 2017.On the one hand, with the domestic stagnant demand of MDI in the past few years, domestic MDI manufacturers urgently need to open foreign market. On the other hand, with the current better MDI market performance of Africa, the Middle East, Eastern Europe, and Southeast Asia and the growth rate of 10% in the North America, exporting MDI to these foreign markets is a good choice for domestic manufacturers. And as a matter of fact, the most majority of domestic manufacturers are also actively develop foreign markets. According to statistics from PUdaily, the total export volume of China’s pure MDI in the first half of 2017 was 43,000 tons, 7000 tons more than that over the same period of last year with a year-on-year increase of 19%. The total export volume of China’s polymeric MDI was 254,000 tons, 52,000 tons more than that over the same period of last year with a year-on-year increase of 25%.

According to statistics, in the first half of 2017, domestic MDI exports were mostly from Wanhua and Covestro, the pure MDI exports and polymeric MDI exports of which accounted for 90% of the total volume. The pure MDI exports volume of Wanhua and Covestro accounted for 69% and 27% respectively; The polymeric MDI exports volume of Wanhua, Covestro, Dow and Huntsman accounted for 76%, 14%, 2%, and 2% respectively. Wanhua, as the largest MDI exporter, held 70% of the total exports in its both pure MDI and polymeric MDI exports, compared with 68% and 65% in 2016. Wanhua exported its pure MDI mostly to Pakistan, Vietnam and Taiwan, etc, and exported its polymeric MDI to USA, Japan, and Turkey, etc. It can be seen that Wanhua actively explored overseas markets in these two years, especially in North America and Asia.

According to PUdaily analysts forecast, after Sadara’s equipment coming into production, there will be thousands of tons of polymeric MDI flowing into Chinese market. Besides, it heard that polymeric MDI production equipment newly established by Huntsman will be put into production in the second half of 2017, with rise trend of MDI export in the first half of 2017. With all these considered, PUdaily forecasts that the pure MDI export volume will not be less than 90,000 tons this year, and the polymeric MDI export volume will not less than 500,000 tons. The exporter will also maintain the “One Super, One Strong” pattern. Wanhua will also take the absolute advantage of the export volume and Covestro will follow it, while it has a big gap with Wanhua. As for other traders and suppliers, especially Huntsman, it remains to be seen.

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