The two key commercial isocyanates, toluene di-isocyanate (TDI) and methyl di-p-phenylene isocyanate (MDI), account for the bulk of global isocyanate production.
Isocyanates, together with polyols, are used mainly to manufacture polyurethane (PU) polymers, flexible and rigid lightweight foams used for mattresses, furniture, building insulation and refrigeration. Other applications are in coatings, adhesives, sealants and elastomers (CASE applications).
The US and Europe are mature markets where demand for isocyanates is growing at a moderate rate. Demand growth for isocyanates in the next decade is weighted in favour of Asia and South America.
Dow’s TDI plant closure in Camacari, Brazil, resulted in the tightening of supply in Latin America, but supply has been replaced with imports from Asia. TDI supply in other global regions is not considered short.
Participants expect that PU demand in the US automotive sector will remain relatively healthy, while business activity continues to improve in the furniture, bedding and construction segments as the US economy gradually recovers.
New TDI and MDI capacities have been coming on stream in China. Bayer’s 250,000 tonne/year TDI plant in Shanghai started up in late 2011. China’s Yantai Wanhua plans to double its MDI production to 1.2m tonnes/year by 2013. BASF is planning to start up a 400,000 tonne/year MDI plant in Chongqing in 2014.
Updated to mid-February 2013