IPDI Overview

PUdaily, Shanghai-Isophorone diisocyanate (IPDI) is one of the highest-end intermediate chemicals in PU industry, which is used to produce IPDI-based products, such as PUD and IPDI trimmer, etc. These products are mostly providing to industrial customers to produce binders or hardeners for coating used in automotive, anti-corrosion and aerospace applications. Besides, these products are also used in cast elastomer, adhesive and sealants.

Now there are only 4 IPDI manufacturers globally-Covestro, Evonik, Vencorex and Wanhua Chemical. Covestro and Evonik are the two largest suppliers in China.      

With demand for high performance coatings growing in Asia, IPDI manufacturers have been significantly expanding production of IPDI since 2015. Vencorex expanded its capacity to 25 kt/year in the second half of 2015. Wanhua inaugurated its first IPDI plant with initial capacity of 15 kt/year in this April. Covestro has also decided to increase its PUD capacity in Dormagen, Germany in 2017 and in Shanghai, China in 2019, respectively.

According to customs data, China imports 4,582 tons of IPDI in H1, 2016 which remains  almost the same compared with previous year. And the average CIF price of imports is USD 7,930/ton, rising 6% year on year. For domestic market in September, average spot price is RMB 64,500-66,500/ton for Wanhua sources and RMB 68,000-70,000/ton for Covestro and Evonik sources, according to PUdaily pricing data. It is expected that the demand in China will keep stable growth along with the growth of water-based coating industry, while imports and price may go down gradually in the future with increasing supplements from Chinese local supplier.

For more IPDI information, please contact PUdaily analyst at nick.cao@pudaily.com or +86-21-61159288-820

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