14 June 2011 18:43 [Source: ICIS news]
By Clay Boswell
NEW YORK (ICIS)--MDI (methyl di-p-phenylene isocyanate) is likely to be in short supply through 2015, Peter Vanacker, head of polyurethanes business at ?xml:namespace>
“There have been a lot of announcements on MDI investments for 2015 and beyond, but it’s going to be challenging for the whole industry before then,” Vanacker said.
“MDI could be quite tight,” he continued. “We see that already happening this year, and with the growth tendency that we see in the marketplace, it will intensify.”
Most MDI is consumed in the manufacture of rigid polyurethane (PU) foams used primarily for insulation in construction, refrigeration and packaging applications.
The market for MDI, which had been growing at about 6% prior to the recession, is now growing at 7%, according to Vanacker, a rate he expects to persist through the end of this decade.
Demand has recovered quickly from the recession, he said, and it continues to do so, particularly in
“However, I would say that I do see some slowing down in Chinese growth, recently,” he added.
Bayer has responded to the supply outlook by announcing plans to expand production in Asia and
“We are very committed to that, and it will also have a very short time line,” said Vanacker.
Bayer is also seeking permits to build another 500,000 tonne/year facility at the same site.
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