Polyurethane raw material information: Market fluctuations and green transformation drive new industry patterns

With the upgrading of global manufacturing and the promotion of low-carbon economy, the polyurethane raw material market is undergoing multiple challenges, including cost fluctuations, technological iteration, and demand differentiation. The prices of core raw materials such as MDI and TDI are experiencing more intense fluctuations, while green products such as bio-based alternatives and waterborne polyurethane are accelerating their penetration, driving the industry towards high-end and low-carbon transformation.

I. Market dynamics: cost pressure and regional demand differentiation

Price fluctuations persist

In the first quarter of 2025, the global MDI market witnessed multiple rounds of price hikes. Major enterprises such as Wanhua Chemical, BASF, and Huntsman successively raised MDI prices by $100-300/ton, primarily due to the escalating upstream costs of crude oil and natural gas, as well as the tight supply caused by maintenance of Asian plants. Taking Wanhua Chemical as an example, its MDI selling price in the ASEAN region increased by $200/ton compared to the beginning of the year, directly driving up the costs in the refrigerator, freezer, and other home appliance industries.

Regional demand differentiation

Stimulated by the "trade-in" policy, the demand for MDI in China's home decoration, automotive, and other sectors is robust. However, due to the slow recovery of the construction industry, the demand growth in the European market is limited. The ASEAN region has emerged as a new growth pole, with the Southeast Asian thermoplastic polyurethane market expected to have a higher compound annual growth rate than the global average, attracting companies such as BASF and Covestro to establish production bases.

II. Technological Breakthrough: Chinese Loong Leads the Upgrade of the Industrial Chain

MDI production capacity leads globally

China has become the world's leading MDI producer, with Wanhua Chemical ranking first with a production capacity of 3.5 million tons per year, accounting for about 30% of the global total capacity. Its independently developed POCHP technology achieves zero carbon emissions in propylene oxide production and has built a world-leading zero-carbon green chemical park.

Breakthrough in special polyurethane materials

The 200,000-ton annual production facility for specialty isocyanates at Meirui New Materials is about to commence operations. The products, with a 30% improvement in resilience and wear resistance, are widely used in fields such as new energy vehicle battery packs and aerospace components. Wanhua Chemical's 70-second ultra-fast demolding system has been applied by home appliance companies like Hisense and Midea, contributing to a more than 10% improvement in refrigerator energy efficiency.

III. Green transformation: bio-based and circular economy become mainstream

The rise of bio-based polyurethane

Companies such as BASF and Covestro are accelerating their layout in bio-based raw materials. BASF has launched a 100% recyclable soft polyurethane foam, using vegetable oil to replace some petrochemical raw materials. Covestro has partnered with a French company to develop mattress foam recycling technology, enabling the circular utilization of polyols and TDI precursors. Chinese companies are also making efforts in this field. Wanhua Chemical has achieved mass production of bio-based polyether polyols at the 10,000-ton scale, with a carbon footprint 40% lower than that of traditional products.

The circular economy model is implemented

Wanhua Chemical has been shortlisted for the 2024 ICIS Product Innovation Award for its polyurethane rigid foam recycling technology. Its chemical recycling process can achieve 100% degradation and reuse of waste foam, reducing 3 tons of carbon dioxide emissions for every ton of rigid foam recycled. Home appliance companies such as Haier and Midea have launched low-carbon refrigerators equipped with recycled polyurethane materials, with a price premium of 15%-20% compared to traditional products.