Pure MDI in China
Forecast of Pure MDI Consumption in China for 2019-2023
PUdaily, Shanghai– As for the downstream sectors for pure MDI, the TPU and spandex will continue to experience rapid growth in their outputs. Whereas outputs of synthetic leather resin and sole resin will decline. Specifically:
It is expected that over the next 5 years the growth of TPU output will remain at 8-10% due to the start-up of new and expansion capacities, contributing 2-2.5 percentage points to the growth of the pure MDI consumption.
In the coming years, the spandex output is expected to maintain a growth rate of 5-8% as the growth of new capacities will slow, contributing 2 percentage points to the growth of the pure MDI consumption.
As for the synthetic leather resins industry, the Action Plan for the Reduction of Volatile Organic Compounds in Key Industries covers the period from 2016 to 2018. But as the environmental requirements become stricter, VOC emission standards will also be increasingly stringent in the future. It is estimated that pure MDI consumption by PU resins for synthetic leather will continue to grow at -3% to -4% in the years ahead, contributing -1 percentage point to the overall growth of pure MDI consumption.
In terms of sole resins, as more shoe makers move to Southeast Asia, the sole resins market in China will continue to shrink. It is estimated that pure MDI consumption by sole resins will continue to grow at about -2% in the next 5 years, contributing -0.5 percentage point to the growth of the overall pure MDI consumption.
Facilitated by the government’s environmental policies, pure MDI consumption by other promising application fields such as CPU and solvent-free polyurethane is increasing. PUdaily estimates that these sectors will grow at a rate of around 10%, contributing less than 0.5 percentage point to the growth of pure MDI consumption.
Overall, the consumption of pure MDI is expected to maintain a growth rate of 3-4% in the next 5 years.