Global MDI/TDI Plants Enter Peak Maintenance Season, Wanhua Chemical’s Hungary Shutdown Draws Market Attention

On July 21, Wanhua Chemical (600309.SH) announced that its wholly-owned subsidiary, BorsodChem Zrt. in Hungary, will initiate scheduled maintenance for its MDI (400,000 tons/year) and TDI (250,000 tons/year) production units starting July 23, 2025. The maintenance period is expected to last approximately 30 days and will cover the main production units and associated supporting facilities. The company emphasized that this is part of its annual routine maintenance plan and will not have a material impact on overall operations.

However, this scheduled shutdown comes amid a period of heightened supply-side constraints across the global MDI and TDI value chains. As early as June, Wanhua had already commenced maintenance at its industrial complex in Fujian, China, involving its 800,000 tons/year MDI unit, 360,000 tons/year TDI unit, and other PVC production lines, with an expected maintenance cycle of 45 days. Additionally, a major incident occurred in mid-July at Covestro’s TDI facility in Dormagen, Germany, where an electrical fire triggered a force majeure shutdown. This unexpected disruption further strained supply in the European market and became a key catalyst for the recent surge in TDI prices.

Domestically, HeShan Juli shut down its TDI production line on July 15 for maintenance, expected to last about 33 days. Other producers such as Gansu Yinguang also plan to initiate maintenance work before the end of July. Meanwhile, key facilities in other major Asian chemical-producing countries have also entered their annual maintenance schedules. For instance, Japan’s Mitsui Chemicals began major maintenance on its TDI unit on May 9, lasting two months. Other international players like Korea’s Kumho, Japan’s Tosoh, and industry giants Huntsman and BASF began overhauls of their MDI production lines around mid-May.

This wave of concentrated maintenance activity and unplanned shutdowns has delivered a significant short-term shock to MDI and TDI supply. According to public data, since early July 2025, domestic TDI prices have surged from around RMB 12,000/ton to over RMB 13,500/ton. While MDI prices have not spiked as sharply, there has been localized upward pressure and fluctuating quotes across several regions, reflecting a strong market sentiment of caution and watchfulness.

Securities analysts note that the TDI industry’s highly concentrated supply structure amplifies market expectations of short-term supply risk amid synchronized shutdowns of large domestic and overseas facilities. A report by GF Securities states: “TDI supply is currently in a phase of pronounced tightening. With overseas force majeure events and domestic maintenance coinciding, product margins are expected to further improve.”

Overall, Wanhua Chemical’s scheduled maintenance at its Hungary-based BorsodChem facility is a planned part of its global production strategy. However, due to the overlap with an already tight industry backdrop, the shutdown has drawn significant market attention. The continued supply-demand imbalance, elevated price levels, and the stability and recovery pace of production units will be key variables shaping the near-term MDI/TDI market trajectory. In the short term, supply tightness is unlikely to ease fundamentally, and prices are expected to remain at elevated, volatile levels.