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Polyurethane Market Quarterly News Report (20120101-20120331)
"According to a latest Polyurethane market report, it is said that global
Polyurethane products sales volume reached 40.6 billion dollars in 2011
and will achieve 57.4 billion dollars by 2016 with the compound annual
growth rate at 7.2% from 2012 to 2016..."
Tel: 021-61159285Fax: 021-61159277Email: [email protected]: www.pudaily.com
Contents
"At that time, Asia-Pacific is made the largest market, followed by Europe.
Asia-Pacific leads Polyurethane output and consumption in the world. As
a newly emerging market in global Polyurethane industry, Asia-Pacific
has witnessed furious competition in recent years..."
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 2 Global Polyurethane Market• Growth inMideastPolyols, Isocyanates toBeStrong(2012-1-5)
Growth in the Middle East toluene di-isocyanate
(TDI) and methyl di-p-phenylene isocyanate
(MDI) sectors is expected to be robust in 2012 because
of the region's rapidly expanding infrastructure and
population, market players said.
Most industry players added that they expect
growth in the region’s TDI and MDI sectors to be at 5-6%
annually until 2015.Others have higher expectations of
about 10% annual growth, but on the condition that the
Arab Spring ends soon.
Given the growing population in
the Middle East, housing projects
are also set to multiply and those
will require rigid foam for insulation.
Consequently, this will boost the
demand for flexible foam in the
furniture and bedding sector. In
addition, the growth in the Middle
East’s population will translate to
more vehicles on the road.
The expectation of strong downstream demand
for both flexible and rigid foams comes as good news
to European and Asian isocyanate and polyol makers,
as the Middle East is a net importer of those two
feedstocks. Furthermore, there are no additional TDI
and MDI capacities scheduled to come on stream
in Europe and Asia this year, so that should help to
underpin prices, said players.
Meanwhile, Asian MDI and TDI prices are expected
to be supported by restocking activities after the
Lunar New Year holiday on 22-28 January and this in
turn is expected to underpin prices in the Middle East as
the region’s prices move in tandem with the key China
market.
"If demand from China improves after they return
from the Lunar New Year holiday, [TDI and MDI] prices
will continue on its uptrend,” a European producer said.
However, some market players cautioned that any price
gains this year will be capped as supply may become
long again.
• HuntsmanAcquiresTurkishPolyurethanesSystemsHouse(2012-1-5)
Huntsman Corporation
announced that it has
acquired EMA Kimya Sistemleri
Sanayi ve Ticaret A.S., an MDI-
based polyurethanes systems house
in Istanbul, Turkey. As a result of
the deal, EMA will become part of
Huntsman’s Polyurethanes division and will be known
as Huntsman-EMA. EMAs’ two major shareholders, Mrs
Gulum Kabil and Mr Engin Tataroğlu, will continue to
manage the business operations of the new venture.
EMA’s plant was built in 2006 to produce
polyurethane blends for Turkey's fast-growing MDI
systems market. Today, the facilities have capacity for
system blending, polyester polyols manufacture and
bulk MDI and base polyols storage.
• SCG-DOWGroupAchievesSuccessfulThailandHPPOPlantStart-up(2012-1-5)
The Dow Chemical Company (NYSE:Dow) announced today that the SCG-Dow Group, a joint venture between
Dow and Siam Cement Group, has finalized the start-up of its new propylene oxide (PO) facility in Thailand by
successfully completing its full capacity performance test.
Dow reached a key milestone in October 2011 when the plant achieved stable production levels in preparation for
the full capacity run scheduled for the fourth quarter of 2011. The new facility met that target on time by successfully
completing the full capacity run on November 22, 2011 – only two months after starting raw material feeds to this new
plant. Additionally, the plant exceeded expectations for all quality and yield performance parameters.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 3 Global Polyurethane MarketThe world-scale plant, located within the Asia Industrial Estates
(AIE) site near Map Ta Phut, Thailand, has a name plate capacity
of 390 kilotons per annum (KTA) of PO via the innovative hydrogen
peroxide to propylene oxide (HPPO) technology.
"The successful start-up of this environmentally advanced and
complex technology shows the innovation power, project execution and operational strength of Dow,” said Holger
Baer, global manufacturing and technology director, Dow Propylene Oxide/Propylene Glycol.
"Dow’s investment in this new facility strategically enhances its existing position as the global capacity leader in PO
and better positions its derivative businesses such as Polyurethanes and Propylene Glycol,” said Steven English, global
vice president, Dow Polyurethanes. “As a global strategic source point, Dow can better serve customers of these life-
enhancing industries in Asia and beyond.”
"Despite some anticipated challenges, the commitment of people from various functions has delivered a successful
project. This HPPO plant will add value to propylene from the joint venture cracker in Thailand,” said Cholanat
Yanaranop, President of SCG Chemicals Company Limited.
• POPricesLessBullishonWorriesofWeakerDemand(2012-1-11)
Market part ic ipants in As ia are toning
down their bullish first-quarter forecasts
for propylene oxide (PO) because of the uncertain
macroeconomic outlook and worries about oversupply
and weaker demand from China, the region’s largest PO
consuming nation.
Market players originally expected total PO demand
in China to grow to above 2.2m tonnes in 2012, up from
around 1.85m tonnes in 2011.
However, Asia’s demand for PO is expected to
drop because global economies are still grappling with
substantial downside risks such as laggin GDP growth
momentum as well as low business and consumer
confidence, while China is still maintaining a prudent
monetary policy, despite a recent cut in its bank reserve
requirement ratio.
In addition, the tight supply conditions seen in
2011 have eased as operations at key facilities resumed
and commercial production at new PO plants, including
Dow Chemical’s 390,000 tonne/year PO unit in Thailand
have started successfully.
The increase in supply exerted downward pressure
on the spot PO market, causing prices to fall by as much
as $400/tonne (€312/tonne) within weeks in December
2011, ICIS data showed.
In December, PO prices dropped to a one-year low
of $1,500/tonne CFR China, according to ICIS data,
narrowly breaching what market players said was the
breakeven level for many producers, before rebounding
to around $1,600/tonne in end-2011 on the back of pre-
holiday restocking activity.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 4 Global Polyurethane Market• BASFandSinopecInaugurateUS$1.4blnSecondPhaseofNanjingIntegratedPetrochemicalSite(2012-1-13)
BASF-YPC Co., Ltd. is a 50-50 joint venture between BASF
and Sinopec, founded in 2000 with a total investment
of US$2.9 bln in the first phase. Located in Nanjing, Jiangsu
Province, it produces chemicals and polymers for the Chinese
market.
"Through this successful partnership, we are able to
bring vital chemical products and solutions to China that will
directly support local industries as they strive to meet the needs of a rapidly developing population,” said Dr. Martin
Brudermüller, Vice Chairman of the Board of Executive Directors of BASF SE, responsible for Asia Pacific.
• EvoniktoSetUpChengduBranchinChina(2012-1-17)
Evonik announced that it will open a new branch
in Chengdu, Sichuan province in the first quarter
of 2012. The new branch will be located at Yanlord
Landmark in the heart of Chengdu's central business
area.
Developing the west is a matter of vital importance
in China’s 12th Five-Year Plan. With the implementation
of the government’s ambitious strategy, Chengdu is
gradually playing a leading role in the development of
the western region in China. This move of Evonik will
expand the company’s presence in China and enable
Evonik to further explore growth opportunities in this
region.
"Chengdu has become the economic and financial
hub of West China and already has a complete
chemical value chain. It therefore attracts international
companies to set up branch offices here.” said Dr. Hans-
Josef Ritzert, Regional President Greater China of Evonik
Industries, "With our new branch in Chengdu, we will
tap more business potential opportunities in western
China. Our local presence will also benefit the existing
customers in this area. We will be able to support them
with faster and more responsive services."
A team that consists of members from all business
units of the company will start to work in the new
Chengdu branch from this year. The team will focus
on providing solutions based on Evonik’s entire product
portfolio mainly in the area of automotive, electronics,
coatings, feed, health care and construction industries.
The company also plans to increase the staff number
along with the business expansion in western China in
the future.
• BASFtoSet-upProductionPlantforTDI&ExpansionofExistingPlantsatLudwigshafen(2012-1-20)
BASF has recently announced that it will build
a single-train 300,000 metric tons per year
production plant for TDI (toluene diisocyanate) and
expand additional plants for its precursors at its site
in Ludwigshafen. These include the construction of a
new hydrogen chloride recycling plant as well as the
expansion of plants for nitric acid, chlorine and synthesis
gas. It is also planned to expand the aromatics complex
at the site for the supply of toluene. Total investment
including the required infrastructure at Ludwigshafen site
will be about €1 billion and create around 200 additional
jobs. Production will start at the end of 2014. BASF
plans to close down its 80,000 metric tons per year TDI
production plant in Schwarzheide, Germany, when the
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 5 Global Polyurethane Marketnew plant goes on stream. TDI is a key component mainly used for flexible polyurethane foams.
"This project will position us as the low-cost TDI producer in Europe due to economies of scale and the highly
efficient integration into our Verbund," said Wayne T. Smith, President of BASF's Polyurethanes division. " Building
our new TDI plant at our largest Verbund site in
Ludwigshafen gives us the advantage of the excellent
production synergies, raw material integration and
logistics. Together with our existing TDI sites in Asia
and North America we will be able to optimally
serve customers in al l major markets"."We are
constantly developing the Ludwigshafen site further
to remain competit ive i n t e r n a t i o n a l l y . I n
a d d i t i o n t o s u c h important investments in
production, this involves m o d e r n i z a t i o n a n d
targeted development of the whole infrastructure,"
said Dr. Bernhard Nick, Site Manager of the BASF
Ludwigshafen Verbund site. "The new TDI plant and the related facilities strengthen the competitiveness of BASF's
largest Verbund site". Associated investments in precursors and infrastructure will support additional growth in other
BASF value chains.
At Schwarzheide, BASF will develop its site structures according to the future needs over the next years to focus
more on specialties. With the investment BASF will have two strong sites in Europe for polyurethane basic products:
Ludwigshafen for the production of TDI and Antwerp for the production of MDI (diphenylmethane diisocyanate) and
propylene oxide.
• EuropeFebPolyolPricesRiseonHigherCosts,MarginRecovery(2012-2-10)
European polyo l contract
prices have been driven up in
February by intensified cost pressure
and the need for margin recovery,
market players said on Wednesday. A
few producers said they had secured
hikes of €100-150/tonne, but this
was reflective of combined increases
for January and February rather
than February only and there was
insufficient market confirmation to
substantiate this. By contrast, one
buyer said it had secured a rollover
in its flexible polyol price, stating
that its increase is postponed to
March amid intensified competition
between suppliers. However, this was
seen to reflect an exception rather
than the norm.
Downsteam demand into the
bedding and furn i ture sectors
remains reasonable-to-good, despite
underlying economic uncertainty.
However, some players are mindful
that polyol demand could be limited,
if the succession of production
problems for TDI continue. This
i s b e ca u s e T D I i s t h e f l ex i b l e
counterpart, used with polyols in
foam manufacturing.
The flexible polyols market
is balanced-to-tight, depending
on source. Some sug gest that
polyols supply is limited because of
some weather-related production
constraints and the prioritisation
of upstream propylene oxide (PO)
into downstream monopropylene
glycol, rather than the polyol sector.
The latter is attributed to increased
demand for de-icer and antifreeze
due to the cold temperatures and
snow across Europe. However, other
players said that supply remains
sufficient and they have not
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 6 Global Polyurethane Market
• BASFTDIAllocation(2012-2-17)
Effective immediately, BASF is currently announcing an 80% allocation on toluene diisocyanate (TDI) based on the
average of the previous six months purchases. We expect this allocation to be in effect through March 2012 due to
the verbund turnaround taking place in Geismar, Louisiana.
Your Account Manager will provide details of this allocation and is available to answer any questions you may have.
We apologize for this allocation and appreciate your continued support of BASF Urethane Chemicals.
• Mideast/AfricaTDIPricestoStayFirminMarchonShortSupply(2012-2-27)
Middle East and African toluene di-isocyanate (TDI)
spot prices will continue to rise in March because
of tight supply and high upstream benzene costs,
industry players said on Friday.
The shortfall in TDI availability in the Middle East
and Africa, which are import dependent regions, is a
result of ongoing outages or turnarounds and a series of
forthcoming scheduled shutdowns globally, they added.
Consequently, TDI prices in the Middle East are
currently the second highest after the US. Most players
are confident that the price uptrend will continue in the
Germany-based BASF said on
Tuesday it is on schedule to
begin a 30-day turnaround at its Geismar,
Louisiana, complex on Wednesday.The
company first confirmed the plans back
in January.
B A S F w i l l p e r fo r m p r e v e n t i v e
maintenance and equipment inspections
and will install new equipment, the
company has said. Many of the site’s
plants will be shut down during the
turnaround. The last similar turnaround
at the Ge ismar s i te was in 2008,
according to the company.
The complex includes units that
produce 290,000 tonnes/year of methyl
d i -p -pheny lene (MDI) ; 160,000
tonnes/year of toluene di-isocyanate
(TDI); and 135,000 tonnes/year of
butanediol (BDO), according to ICIS
plants and projects.The site also produces
160,000 tonnes/year of hydrochloric acid
(HCl) as a by-product of its isocyanates
production.
TDI consumers are not expecting
any disruptions. Sources said BASF’s and
processors’ inventories are sufficient to
supply requirements for polyurethane
(PU) production during the shutdown.
US BDO sources have said consumers
probably will not see any disruptions in
filling first-quarter BDO contract from
BASF.
e x p e r i e n c e d a n y
production problems.
Monthly rigid polyol
prices have moved up
to t h e m i d - to - u p p e r
€1 ,900s/tonne FD in
February for the same
cost reasons as for its
f lex ib le counterpart .
There were suggestions
of larger increases and
pr ices up to €2,000/
tonne, but they were not
widely confirmed. There
was also talk of prices
below the range, but this
was not seen to reflect
the general market level.
• BASFtoStart30-DayTurnaroundatLouisianaComplexonWednesday(2012-2-15)
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 7 Global Polyurethane Marketsecond quarter, with offers already
surpassing $3,000/tonne CFR Middle East/
Africa this week.
Half of the TDI producers based in Asia
and Europe said they are unable to offer
any spot March or April material to the
Middle East because of plant shutdowns in
their region, so that has further tightened
supply.
BASF and Bayer MaterialScience are
short of March and April spot shipments,
with one producer’s supply likely to remain
tight until June, sources close to the two
companies said.
In addition, Japan’s Mitsui Chemicals
has already sold out its March allocations,
while Perstop and Borsodchem are still
clearing their February backlogs and are
uncertain about how much spot material
they will make available for sale for March,
company sources said.
A Dubai-based trader said it seems like
there is no spot availability, as cargoes being
offered are less half of their usual volume.
The short supply in South America has also
squeezed availability in the Middle East
and Africa tighter, industry players said.
The tight supply has caused prices
to rise despite the fact that demand is
moderate, market players said. A European
trader added that there are few offers for
European product in the African market,
but their customers are mostly covered
even until April.
• ShellAnnouncesPolyolIncreaseProduct Effective Date Price Rise
Caradol® Polyols February 1 $0.08/lbMay 1 $0.08/lb
• DowPriceActionforTDI,MDIandPolyolsintheUnitedStates
Product Effective Date Price Rise
VORANATE™ TDI February 17 $0.10/lbMarch 1 $0.10/lb
March 15 $0.05/lbBefore March 30 $0.15/lb
PAPI™, ISONATE™, and ISOBIND™ MDI March 1 $0.10/lbFlexible VORANOL™, VORALUX™, and
SPECFLEX™ polyolsFebruary 17 $0.10/lb
March 1 $0.15/lbMarch 29 $0.10/lb
•USPolyols,IsocyanatesPricesRiseonFeedstocks,Supply/Demand(2012-3-6)
Prices of polyols and isocyanates
in the US are rising because of
tightening product availability and increasing feedstock costs amid
strengthening demand, a major US
supplier said on Monday.
Buyers have signalled little
resistance to the increases
announced by several US suppliers as consumers were more concerned
about obtaining sufficient product.
The supplier said it had announced price increases for toluene
di-isocyanate (TDI) of 10 cents/lb ($220/tonne, €167/tonne) for 17
February, 10 cents/lb for 1 March and 5 cents/lb for 15 March.
The same supplier announced price increases for flexible polyether
polyols at 10 cents/lb for 17 February. Other initiatives for were at 10
cents/lb for flexible polyether polyols for 1 March and at 15 cents/lb for
copolymer or graph polyols for 1 March.
An additional 10 cent/lb increase on all polyols was scheduled for
29 March, according to the supplier. The supplier said the increases are
being implemented as announced, driven by short availability of TDI,
rising cost of MDI feedstock benzene, and tight supply of polyols.
Low inventories at year-end and strong demand from polyurethane
consuming sectors such as automotive, furniture and bedding, and
construction are contributing to market tightness and support rising
prices.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 8 Global Polyurethane MarketTDI availability of remains tight because of allocations announced by two US producers. BASF announced
an 80% allocation on TDI because of a 30-day planned maintenance turnaround at its Geismar, Louisiana, complex
that started on 15 February. Bayer MaterialScience is maintaining a temporary 90% allocation because of reduced
inventories.
Major US polyols and/or isocyanates producers are BASF, Bayer MaterialScience, Dow Chemical and Huntsman.
• MitsuitoCloseChibaPPGPlant(2012-3-16)
• GermanyPushesAheadWithMajorTDIExpansionsDespiteAnUncertainMarket(2012-3-20)
The large local producers BASF and Bayer MaterialScience (BMS) both have established isocyanate production sites
in the country, and also have smaller, older TDI units there. They could benefit from replacing the smaller units
with newer, larger, more cost-effcient ones.
As part of BMS's TDI new capacity and restructuring project, the firm plans to build a €150m ($200m)
Mitsui Chemicals, Inc. and
S a u d i B a s i c I n d u s t r i e s
Corporation (SABIC) announced
a L i c e n s e A g r e e m e n t f o r
manufacturing technology of TDI and
MDI, feedstock for polyurethane, and
to study further possible business
alliances. In light of this agreement,
Mitsui Chemicals will restructure
its polyurethane business. Mitsui
Chemicals will study further business
all iances in polyurethanes with
SABIC. SABIC will commence front
end engineering and design (FEED) of
its competitive world-scale, cutting
edge TDI/MDI plant using Mitsui
Chemicals' proprietary technology.
Mitsui Chemicals will study further
possible business alliances with
SABIC in terms of business strategy as
well as economical feasibility, which
may include forming a joint venture
company and conclude a concrete
alliance plan in 2013 after the FEED
has been completed by SABIC.
J a p a n e s e d e m a n d f o r
polypropylene glycol (PPG), a raw
material of polyurethane, is expected
to drop gradually over the mid to
long-term. Mitsui Chemicals has
decided to terminate production
of PPG by June 2012 at Ch iba
Polyol Corporation, its 90% owned
subsidiary, where approximately
28,000 tons are produced annually.
T h e C o m p a n y w i l l c o n t i n u e
production at its two other PPG
production sites in Japan (Nagoya
Wo r k s a n d To k u y a m a B ra n c h
Factory). The Company wil l cut
costs and reinforce profitability by
improvement of operational rate and
other production rationalization.
Mitsu i Chemica l s current ly
produce TDI and MDI at factories
in Japan and also at Kumho Mitsui
Chemicals, Inc. in South Korea. The
company will optimize its production
of TDI and MDI at existing facilities
and the new facilities in Saudi Arabia.
It is expected that those overseas
facilities will become the main supply
bases of Mitsui Chemicals. Mitsui
Chemicals will continue to strengthen
its coating and engineering material
operations, one of the five priority
businesses in the Mid-Term Business
Plan, by measures including strategic
overseas investments. Domestic
sites, mainly Omuta Works and
Kashima Works, have been making
accelerated efforts to implement the
cost reduction program targeting
cost cuts of 8 billion yen by FY2015 (in
comparison with 2010) and recently
executed reduction in depreciation
costs due to impairment loss for
fixed assets. The cost reduction plan
is expected to be attained with the
amount of 3 billion yen in 2011.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 9 Global Polyurethane Market300,000 tonne/year TDI facility at Dormagen, Germany, and replace its existing TDI and pilot plants on site, which
have combined capacities of 90,000 tonnes/year.
BMS also plans to convert its 125,000 tonne/year TDI unit at Brunsbuettel, Germany into a 220,000 tonne/year
methyl di-p-phenylene isocyanate (MDI) facility. On February 22, 2012, BMS said it received authority approval to start
building its TDI facility in Dormagen. The company had announced its TDI capacity plans in March 2010 and applied for
regulatory building approval in April 2011.
BASF's plans to make a new €1bn investment in a 300,000 tonne/year single train TDI unit and new TDI precursor
units at its main Ludwigshafen production site, in Germany. This expansion will also mark the end of its 80,000 tonne/
year TDI unit at Schwarzheide, Germany. The firm plans to develop its Schwarzheide site to focus on specialty products.
• WanhuaInternational(India)SetsUpinMumbai(2012-3-21)
As one of major rising economic powers in the world, India has
witnessed rapid growth of its polyurethane industry with the
output of 320000 tons in 2011. In next few years, the figure will
increase 15% annually. Recently, Wanhua International (India) is
established in Mumbai with 10 million rupees, engaged in import
and export of chemicals.
• GlobalTDIMarkettoReachUS$8Blnin2016,atAnEstimatedCAGRof5.5%(2012-3-23)
• BASFExpandsinIndonesiaWithNewPolyurethanesLaboratories(2012-3-30)
ASF, the world’s leading chemical company, has launched new laboratories for Polyurethanes (PU) at its Cimanggis
site in Indonesia. This expansion will further strengthen the company’s technical service network in the ASEAN
region.
Housed in the BASF Technical Service Center at Cimanggis, the new laboratories are designed to enhance the
TDI (Toluenediisocyanate) is mostly used to
manufacture flexible polyurethane foams which
are primarily used as cushioning material in furniture
and transportation applications. It is mainly used in beds
and car seats and to some extent in manufacturing rigid
foams, coatings, adhesives &sealants, and elastomers.
The global TDI revenue is expected to reach at USD
8 billion in 2016 with an estimated CAGR of 5.5% from
2011 to 2016, as per transparencymarketresearch.com.
Positive volume growth is expected into the global TDI
market at a CAGR of 4.8% from 2011 to 2016 due to
the rise in demand from developing economies such as
India and China in Asia Pacific.
Flexible PU foams are the largest TDI application
market that accounted for 85.2% of the Toluene
diisocyanate market revenue in 2011. The flexible foams
segment is expected to grow with a CAGR of 5.6%
during 2011 – 2016.
The Asia Pacific is the fastest growing regional
market, which is expected to reach US$3 bln in 2016
with a CAGR of 6.8% during 2011 – 2016. The Asia
Pacific TDI market is expected to have a volume share
of 39% of the global TDI market in 2016. Continuous
rise in TDI bulk price is observed since January 2009 on
account of rise in feedstock (Toluene) costs and rise in
crude oil prices.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 10 Global Polyurethane Marketquality and efficiency of technical services, including
the analysis of polyurethane system performance, reactivity
and physical foam testing. BASF’s application engineers
can provide customized solutions by adjusting the system
formulation to meet specific needs, thereby saving customers
time and money.
"Indonesia, already the largest economy in Southeast Asia,
needs the right innovative materials and solutions to support
its continued growth,” said Henry Choo, President Director,
PT BASF Indonesia. "Polyurethanes are a crucial for products
such as shoes, energy efficient refrigerators and building insulation materials, cars and motorcycles. With these new
laboratories, we will be able to offer fast, local support and stay closer to customers, to help them address industry
challenges such as the need for better production efficiency and more environmentally-friendly solutions.”
"The world of polyurethane systems is highly service-oriented and depends heavily on the expertise and
competence of its service providers. As a global leader in polyurethanes, we enable customers in every part of the
world to have access to the technical support and service they need to optimize their product applications," said Mr.
HyoungSoon Moon, Vice President of Polyurethanes in Asia Pacific. "The new technical laboratory allows us to serve
local customers with comprehensive, tailored PU solutions through a reliable, single global supplier. The strong growth
and demand in this region has provided us with compelling reasons to invest in the technical facilities and experts
in this area. These investments will help to boost the ASEAN region into one of the fastest-growing markets in the
polyurethane industry within the next decade."
2012 China Polyurethane and Emerging Industries Development & Investment Forum
THE HIGHLIGHTS 1-day International Conference Speakers, enomists, business & government leaders Independent speeches, high-level dialogues, project promotion
For Invitation Letter
30 August 2012 Shanghai Galaxy Hotel
888 West Zhongshan Road, Changning District, Shanghai
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 11 China Polyurethane Market• NewChineseBDOPlantScheduledfor2012Startup(2012-1-11)
GBL tower crane project of China’s Sinopec Yizheng Chemical Fibre Co‘s 100,000 tonne/year 1,4-butanediol (BDO)
plant which would produce 50,000 tonnes/year of BDO, 35,800 tonnes/year of tetrahydrofuran and 4,900
tonnes/year of gamma-butyrolactone is finished. The plant, which was started this early year , is still under smooth
construction and to come on stream by third quater in 2012.
After quintic argumentation of headquarters, Sinopec Yizheng finally adopted the n-butane routing and it signed
the contract about technology introduction with Davy Process Technology on March 12, 2010. The BDO project is
constructed by China Nuclear Industry Huayu Engineering Company.
• ChinaPolyetherPolyolsin2011:ConsumptionGrowthSlowsDown;ExportsVolumeGreatlyRises(2012-1-29)
As analyzed by Pudaily, the total consumption
a m o u nt o f va r i o u s k i n d s o f Po l ye t h e r
Polyols(including POP) exceeds 1.7 million tons. In
details, Elastomer Polyols, Polyether Polyols for Rigid
Foam and POP performs better than other grades in
2011. Meanwhile, HR Polyols consumption growth
slows down remarkably.
T h o u g h
Polyether Polyols
c o n s u m p t i o n
growth rate returns
to less than 10%,
domestic faci l i ty
c a p a c i t y a n d
production has seen
a big increase. Due
to efficient supply within China, imports of Polyether
Polyols decrease by 20% and exports volume rises by
about 40%, as assessed by Pudaily.
• CrudeMDIPriceSeemsHardtoIncrease(2012-2-9)
After the Spring Festival, players come back to the
market early while the downstream factories will
not start production until the Lantern Festival. At that
time, the Crude MDI business is unsatisfactory. Most
traders still hold firm quotations but a few people
quote lower in order to attract customers. After the
Lantern Festival, inquiries from customers are more
than before. The spot market turns active and
some traders gradually have the intention to boost up
quotations.
At the beginning of February, suppliers raise Crude
MDI list prices successively. It has been the third time
for MDI price rise since last November, which places
downstream clients in an unfavorable situation. And
traders also become more prudent about trading.
Meanwhi le, in the downstream sector, the
household appliances industry is greatly influenced
as policies concerned are abolished step by step.
According to market insiders, the prospect of household
appliances industry in 2012 may not be all roses. As for
panel industry, manufacturers maintain low operating
rates.
As opined by PUdai ly consultants , despi te
manufacturers’ efforts to push up quotations, the Crude
MDI price is not likely to rise significantly in February.
• AsianBDOtoRiseFurtheronFirmChinaMarket,ShortSupply(2012-2-15)
Asia’s butanediol (BDO) prices are expected to
strengthen in the coming weeks in line with the
firming prices in China on higher feedstock costs, active
restocking following the Lunar New Year holiday and
tightened regional supply, producers and traders said
on Tuesday. The Chinese BDO prices have increased by
$100-150/tonne (€76-114/tonne), or 4.2-6.3%.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 12 China Polyurethane MarketA Chinese trader said several of its key customers urgently require
BDO cargoes for delivery at the end of February and early March and as is
placing orders for prompt shipment cargoes with regional producers as a
result.
The firming market is causing a panic buying spree, the trader
added. Several regional producers said they received firm bids for bulk-
based prompt shipments at $2,500/tonne CFR CMP. A producer said it is
currently adopting a “wait-and-see stance” as it is expecting the bullish
trend to hold in the coming weeks.
Meanwhile, regional BDO supply is expected to remain tight as Asian
producers were running their plants at below full capacity during the
fourth quarter because of weak demand.
Taiwan’s Nan Ya Plastics is operating its BDO unit at just above 50%
capacity because of narrowing production margins. Nan Ya Plastics
restarted its 60,000 tonne/year No 2 BDO plant in Mailiao on 11 February.
The producer is planning to ramp up its BDO operating rates at the plant to 100% capacity by the end of this week, a
company source said. The company is keeping its 40,000 tonne/year No 1 BDO plant at the same site shut, the source
added. Nan Ya Plastics shut its No 1 BDO plant on 20 January and No 2 BDO plant on 24 January because of weak
demand and to control its rising BDO inventory levels towards the end of its accounting year in 2011.
Japan’s Mitsubishi Chemical is maintaining the operating rates at its 60,000 tonne/year BDO plant in Yokkaichi at
70% capacity also because of narrowing production margins.
• Insight:CrudeMDIPriceTendencyAnalysis(2012-2-16)
Last year,Yantai Wanhua completed the technical reform of 600ktpa MDI plant in Ningbo. At the same time, the
capacity of Yantai Wanhua MDI unit is predicted to achieve 1800ktpa by 2015. The upcoming expansion in the next
few years sounds favorable to downstream clients. But to some traders, it is too early to make a conclusion now.
Crude MDI prices have been kept unchanged since
manufacturers slightly raised quotations in early February after
the Spreing Festival. Traders and middlemen are also willing
to boost up prices while the purchasing enthusiasm among
downstream clients remains low. Some small factories even stop
production to avoid high raw materials costs.
News comes that suppliers intend to increase prices in March.
However, the downstream demand will not improve substantially
in the short run. Thus the Crude MDI market approaches a
deadlock. As predicted by Pudaily Consultant, February or March
will be the most difficult time through 2012 and small fluctuations may occur.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 13 China Polyurethane Market• WorriesbehindMountingPricesofTDI(2012-2-17)
TDI price has risen RMB20000/ton from
RMB18000/ton since late last year. Now
some resources are even quoted RMB21000/
ton. At the same time, BASF will continue to
increase TDI price in March, which encourages
some traders to keep firm quotations.
In view of the booming TDI market, facilities
shut down previously abroad gradually restart.
Mitsui’s 120ktpa TDI plant in Omuta operates
again with about 50% capacity. One 50ktpa
unit of KPX now runs with full load. Therefore,
TDI supply will be increased.
However, in the downstream, the demand
for TDI doesn’t improve substantially compared
with last year. It is known that the downstream
recovery comes 7-15 days later than previous
years due to employment difficulties and
sponge stocks. Additionally, many end users
already stocked up enough resources before
the Spring Festival. As a result, TDI business in
February is expected to remain slack.
• PolyetherPolyolsMarketSeemstoFall(2012-2-28)
PO price falls back in the domestic market. At the beginning of
this week, some suppliers reduce Polyether Polyols quotations
by RMB200/ton. It seems that the former firm market becomes
soft. Traders are holding negative attitude toward Polyether Polyols
business due to poor orders from the downstream. Generally
speaking, the future market may drop slightly in the short run.
Polyether Polyols factories mostly suffer the pressure over
storage. The operating rates of downstream factories improve very
slowly. Therefore, transactions are few in the Polyether Polyols
market due to the limited demand.
Downstream sector: Since the global economic situation is in
a slow recovery, orders received by downstream factories are not
satisfactory too. It is known that end users restart over half a month
later than previous years because of employment problems. Plus
weak demand in the terminal market, the purchasing enthusiasm of
downstream clients remains low.
• PureMDIPricesRiseOnFirmFeedstocksCosts(2012-3-7)
Pure MDI Market Overview in January and February:
Pure MDI market stays firm in January. Some traders
tentatively boost up quotations while high price transactions are
difficult when downstream clients are in holidays. In February, the
market starts to rise. Driven by increased list prices and USD
quotations, most traders are determined to raise prices though
the downstream demand improves very slowly. Transaction
prices are pushed up by a few purchases.
Pure MDI Market Forecast in March and April:
High list prices in March from domestic suppliers express
their positive attitude toward the future Pure MDI market. As for
the market abroad, NPU will restrict supply in March and April
in preparation for the maintenance in May. BASF’s MDI plant
in Korea plans to conduct maintenance in April. Consequently,
the USD quotations will further increase in March and April. Up to now, NPU resources are quoted about USD2500/ton
and BASF products are about USD2450/ton. Pressed by firm costs, the Pure MDI market will rise to some extent which
is partially determined by the downstream demand.
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 14 China Polyurethane Market• PPG Market Deteriorates on Low Demand (2012-3-15)
Due to the poor downstream demand, sales are
difficult for manufacturers. The market is likely to
be oversupplied and high prices lack support. Traders
and middlemen are active to sell stocks and few of them
set out to stockpile in large amount.
In 2012, the prospect may not be all roses for the
real estate industry. Presently, sponge factories and
other end users in downstream sectors still run with low
operating rates and they consume resources very slowly.
Meanwhile, the furniture business seems unsatisfactory
as well. A few customers start to purchase feedstocks
while most bring in materials in small amount.
On the whole, without favorable conditions, PPG
supply and demand in the market can not be balanced
in the short run. At the same time, there is no much
room for PPG price decrease. The future market is going
to consolidate as predicted.
• TDI Market Forecast in April (2012-3-23)
Entering late March, the continually rising TDI market
tends to fall back. Players hold different views
towards the future market. Optimists keep quotations
firm and strong; pessimists are worried about selling
stocks to avoid pressure over storage.
It is coming to the end of this month. List prices
from BASF and Bayer are drawing much attention
of market insiders, which will influence TDI price
tendency in April. It is known that BASF intends to
stabilize or increase prices by small margins. As for
Bayer, due to the outage of its TDI plant previously,
quotations are going to rise on tight supply. Domestic
suppliers may follow their steps.
However, the
poor demand
from downstream
factories is likely to
tie down the whole
market. Most end
users reflect that
this year is even
harder than before.
Operating rates
of some plants are 60%-70% of last year. In sponge
industry, low terminal demand curbs sponge prices.
On the whole, as predicted by Pudaily, TDI
quotations may stay steady at the beginning of April
and fall back to about RMB20000/ton in middle and late
April.
2012 China Polyurethane and Emerging Industries Development & Investment Forum
THE HIGHLIGHTS 1-day International Conference Speakers, enomists, business & government leaders Independent speeches, high-level dialogues, project promotion
For Invitation Letter
30 August 2012 Shanghai Galaxy Hotel
888 West Zhongshan Road, Changning District, Shanghai
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 15
PUdaily EventsPUdaily Events
PUdaily Events2012 China Polyurethane and Emerging Industries Development & Investment Forum
August 30, 2012 Shanghai
Statistics show that the added value of emerging industries of strategic importance will account for about 8% of gross domestic product (GDP) by 2015. And various kinds of high-performance materials are going to be well applied in the emerging industries. The Polyurethane (PU) industry has attracted wide attention. In a bid to popularize PU products and technologies, provide a platform for PU industry information communication, PUdaily holds the “2012 China Polyurethane and Emerging Industries Development & Investment Forum”. Meanwhile, product exhibition is also available to display the new products and latest technology in an all-round way, bridging the vital cooperation platform for industry-university-research, market promotion and application.
Some Forum Speakers• How Middle& Small Enterprises Walk Out of DilemmaSpeaker: Wang Fuzhong, popular economist, Professor of Central University of Finance and Economics (CUFE), Doctor of Economic, guest of "Larry Lang's Talk Show"• How Domestic Enterprises Head for the WorldSpeaker: Yantai Wanhua Polyurethane Co., Ltd• Resources Economy and Chemical EnterprisesSpeaker: Cheng Yiheng, vice chairman of International Ecological Union, Asia Branch, Special invited expert of Chemical Industry Productivity Promotion Center of China• Global Polyurethane New Market Development OpportunitiesSpeaker: Frank Doerner, head of Commercial Operations for Greater China of Business Unit Polyurethanes (PUR), Bayer MaterialScience• How Middle & Small Enterprises Financing EffectivelySpeaker: Futao, Managing Director of Guotai Junan Securities CO., LTD
Admission• Forum Speaker: Free • Participants: USD 500/person • Project Promotion: USD 2000/20mins for Each Enterprise
Participants• Government organization leaders• Leasing Manager of Chemical Parks• Economist• Managers of Polyurethane Enterprises
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 16
PUdaily EventsPUdaily Events
PUdaily Events• Project Investors Home and Abroad
• PU-Related Associations at home and abroad
Project Promotion Topics• To Explore Non-Oil Polyurethane Material Actively• Shipping, Petrochemical, Metallurgy and Aerospace• The Application of Polyurethane in Wind Energy• Market Analysis of PU-Related Emerging Industry• Demand for Polyurethane Materials on New Energy Vehicles• The Application of Polyurethane in Solar Energy Integration• The New Material Application Development in High-Speed Rail (HSR)
• The New Development Opportunity of Polyurethane Industry Brought by Low-Carbon Economy
2012 China Polyurethane and Emerging Industries Development & Investment Forum
THE HIGHLIGHTS 1-day International Conference Speakers, enomists, business & government leaders Independent speeches, high-level dialogues, project promotion
For Invitation Letter
30 August 2012 Shanghai Galaxy Hotel
888 West Zhongshan Road, Changning District, Shanghai
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 17 About PUdaily
PUdaily (www.pudaily.com) is a professional polyurethane website platform specializing in the information consulting and technical service mainly about Chinese market, as well as oversea markets. By offering resourceful PU information analysis, investment argumentation, industrial survey, feasibility study and market analysis, we are trying to help strengthen our clients' competitiveness, evade the business risks and get a better view of the domestic market development.
PUdaily Market Reports Include:• Polyurethane News Spotlight
• Price History and Trend
• Feedstocks Maket Dynamics
• Downstream Industry Glance
• Supply and Demand Analysis
• Facility Shutdown Schedule
• Market Review and Forecast
• Import and Export Statistics
•Products Introduction and Segmentation
For any subscription of PUdaily weekly, monthly or annual reports, please contact us at [email protected].
Contact:
Ms. Lucy Tang Suntower Consulting Co., Limited
2/F, Block B, Caohejing Software Building, No. 461 Hongcao Rd, Xuhui District, Shanghai, China
Direct Line: 86-21-61159285
Tel:86-21-61159288 Ext: 831
Mp:86-15000395962
E-mail:[email protected]
www.pudaily.com Your Trusted PU Market Adviser January-March 2012
Page 18 About PUdaily
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2012 China Polyurethane and Emerging Industries Development & Investment Forum
THE HIGHLIGHTS 1-day International Conference Speakers, enomists, business & government leaders Independent speeches, high-level dialogues, project promotion
For Invitation Letter
30 August 2012 Shanghai Galaxy Hotel
888 West Zhongshan Road, Changning District, Shanghai