The two key commercial isocyanates, toluene di-isocyanate (TDI) and methyl di-p-phenylene isocyanate (MDI), account for the bulk of global isocyanate production.
They are used predominantly to manufacture polyurethane (PU) polymers, which range from flexible or rigid lightweight foams – used for mattresses, furniture, building insulation and refrigeration – to tough, stiff elastomers.
The US and Europe are mature markets in which demand for isocyanates is projected to grow at sluggish rates during 2012. Demand growth for isocyanates in the next decade is weighted towards Asia and South America.
Participants project PU demand in the US automotive sector to remain relatively healthy, while activity slowly improves in the furniture, bedding and construction segments as the US economy gradually recovers.
New TDI and MDI capacities are 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 production to 1.2m tonnes/year, equivalent to a 10% boost to global production. BASF is planning a 400,000 tonne/year MDI plant in Chongking, to start up in 2014.