China Polyurethane Market Industry
Milestones and Developments in 2021
![Polyurethane Market Industry]()
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Global polyurethane market size is expected to exceed the $77 billion mark by 2023
Nowadays, energy conservation is gaining importance in our daily lives due to increasing costs: at the same time, greenhouse gas emissions are also a growing concern.These factors are the major driving force behind the growth of the global polyurethane market size.
Production And Consumption Are Increasing Year By Year
After years of development and accumulation, China has developed into the world's largest producer and consumer of polyurethane
The total domestic polyurethane production capacity accounts for about 36.4% of the total global production capacity. With the continuous expansion and deepening of polyurethane application fields in recent years, polyurethane products have achieved rapid growth in production and sales in many fields such as construction field, electronic equipment, new energy and environmental protection. In 2020, the production and consumption of polyurethane in China will be 14.7 million tons and 12.4 million tons respectively. Compared with developed countries such as Europe and America, China's polyurethane industry started late. Although China has become a global polyurethane producer at this stage, there is still some room for domestic enterprises to improve product quality, production technology, R&D investment and brand building.
Polyurethane Production In China Is Dominated By Four Major Regions
At present, the regional distribution pattern of polyurethane in China has gradually formed four major sectors: First, the Yangtze River Delta region centered on Shanghai, which has accounted for half of the domestic polyurethane raw materials and products; second, the Pearl River Delta region centered on Guangzhou, which is a more developed area for domestic polyurethane products and foreign trade; third, the Bohai Sea and Northeast region centered on Huludao, where the biggest advantage is the chemical base and the magnificent industrial planning, with a wide variety of polyurethane products and large output; fourth, the Northwest region centered on Lanzhou, which will form the downstream polyurethane products industry chain. The fourth is the northwest region centered on Lanzhou, which will form the industrial chain of downstream polyurethane products.
Major & Hot Polyurethane Products
TDI
CAS : 584-84-9
MDI
CAS : 101-68-8
Epoxypropane
CAS : 75-56-9
Polyether
CAS : 9003-11-6
Butanone
CAS : 78-93-3
Adipic Acid
CAS : 124-04-9
BDO
CAS : 110-63-4
DMF
CAS : 68-12-2
In 2021, the COVID-19 epidemic is still going on. The epidemic control in China is relatively stable, which also creates a good investment environment. Several global companies have increased their investment in China, with Huntsman, LANXESS, and Leander Basell all investing in new production lines in China.
Large-scale Polyurethane Project 2021
- RMB 13 billion BDO, PBAT, PTMEG Project
- Skori New Material Project
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![Sanwei intends to invest 13 billion yuan in the construction of BDO, PBAT, PTMEG and other projects]()
Sanwei intends to invest 13 billion yuan in the construction of BDO, PBAT, PTMEG and other projects
On August 13, 2021, Zhejiang Sanwei Rubber Products Co., Ltd. released an announcement saying that it signed an investment framework agreement with the Management Committee of Low-carbon Industrial Park of Wuhai Economic Development Zone in the early stage, and intended to invest in BDO, PBAT and PTMEG new material industry chain integration projects. -
![Skori New Material Project]()
New Material Project of Lunan Polyurethane Industrial Park with an investment of 1 billion RMB
On March 24, 2021, the Spring Concentrated Groundbreaking Ceremony for the 2021 New Old Energy Conversion Project in Tancheng County was held, and the 1 billion yuan polyurethane new material project of Skori New Material Technology (Shandong) Co.
Dow to invest about RMB 1.6 billion in new South China specialty chemicals manufacturing site
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On March 4, Dow Chemical (China) Investment Co., Ltd. and Zhanjiang Economic and Technological Development Zone Management Committee signed a memorandum of understanding, plans to set up Dow's South China specialty chemicals manufacturing base. According to the MOU, Dow will invest about $250 million (about RMB 1.623 billion) in the construction of specialty polyurethane and specialty surfactant plants, with a total capacity of about 250,000 tons.ENTER
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![Dow to invest about RMB 1.6 billion in new South China specialty chemicals manufacturing site]()
Rising Costs Prompt Costco to Review Site Plan for MDI Plant
Sharply rising U.S. construction costs have been a factor in Costron's re-examination of potential sites for its planned flagship methylene diphenyl diisocyanate (MDI) plant, with China considered an alternative location.In September 2021, Costron announced its intention to proceed with work on a world-scale MDI plant after suspending plans to build a unit in the U.S. in early 2020.Construction costs in the U.S. have increased significantly, resulting in a lower return on capital than we had originally planned," said Markus Steilemann, CEO of Crestron, during an investor conference call. In China, construction costs have remained relatively flat and ROCE is attractive." He added, "Strong demand growth in China and Asia has created the need for another plant in Asia."
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Wanhua Chemical invested $2.4 billion in a new joint venture company
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Sinopec and LyondellBasell to build PO/SM plant together
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On March 24, 2021, Wanhua Chemical announced that the company and Fujian Petrochemical intended to establish a joint venture company, Wanhua Chemical (Fujian) Co. Wanhua Chemical contributed RMB2.4 billion in cash, accounting for 80% of the registered capital; Fujian Petrochemical contributed RMB600 million in relevant assets, accounting for 20% of the registered capital.MORE
![Wanhua Chemical invested $2.4 billion in a new joint venture company]()
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On January 26, China Petroleum & Chemical Corporation (Sinopec) and plastics, chemical and refining company LyondellBasell announced the signing of a joint venture agreement to establish a 50:50 reciprocal joint venture to expand the production of propylene oxide (PO) and styrene (SM) in China. The joint venture will be named Ningbo Zhenhai Refining & Chemical LyondellBasell New Materials Co.MORE
![LyondellBasell]()
With the rapid development of the national economy, the scale of polyurethane consumption in China is rising quite fast. At present, China ranks first in the world in the production of building materials, spandex, synthetic leather and automobiles, and the country vigorously implements new policies on building energy conservation and promotes water-based coatings, all of which bring huge market opportunities for the polyurethane industry.
Development Prospects & Trend Forecast
2020 consumption of polyurethane foam in China is about 4.67 million tons. In the future, the scale of polyurethane consumption will further increase.
Accelerating the Application of Energy Efficiency in Buildings
China's housing and urban-rural construction "14th Five-Year Plan" was released and pointed out that building energy efficiency and green building accelerated, green building materials were steadily implemented, and the role of industry science and technology support should be significantly enhanced. As one of the important materials in the field of building energy saving, polyurethane has great prospect for future development. In the future, Chinese production manufacturers will pay attention to the production and application process, actively promote the intrinsic safety technology, clean production technology with renewable resources and process emission control technology, and promote green production process and environmentally friendly products. Reduce the energy consumption and emission of polyurethane raw materials and products production process, accelerate the development and promotion of bio-based, degradable and recyclable products, and pay attention to the recycling, treatment and reuse of polyurethane materials. Further optimize product structure and improve product performance and quality.