According to reports, global raw materials for polyurethanes are booming, and supply will remain tight until 2006.
According to Jean-Pierre Dhanis, president of BASF's Polyurethane Division, currently the capacity utilization rate of BASF's MDI plant has reached 100%, and the TDI plant's capacity utilization rate is also above 85%. The situation of other major manufacturers is also similar. MDI users are already in the raw material distribution supply state. Dhanis believes that only in the global economic downturn, the shortage of polyurethane raw materials can ease.
Ian Paterson, marketing manager of Bayer's marketing and innovation department, pointed out that from 2004 to 2006, global polyurethane demand growth rate is 5%/year. In the next two years, there will be no production of MDI plant with large capacity, and global polyurethane supply will be relatively tight. According to reports, there will be small-scale production facilities, such as Hungary's Bordoschem company will soon put into production a 80,000 tons / year polyurethane raw material plant. In addition, the 240,000-ton/year MDI plant built by BASF and Huntsman and the Chinese partner in Shanghai will be put into production in 2005. The original planned capacity is 160,000 tons per year. The plant will also produce TDI products. Bayer is currently working to expand its production capacity for MDI plants in the United States, Spain and Germany. The total production capacity will be increased by 120,000 tons/year and the total capacity will reach 920,000 tons/year. Bayer, the world's largest supplier of MDI and TDI, is increasing its investment in raw material supply capacity in China. In the past two years, Bayer has closed four small-capacity TDI production plants. The poor profitability has affected manufacturers' increasing investment enthusiasm, but almost all polyurethane raw material manufacturers are optimistic about the growth potential of the Chinese market and have come to invest and build factories in China.
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