Diphenylmethane diisocyanate (MDI) has a wide range of applications and leading companies have emerged

Diphenylmethane diisocyanate, abbreviated as MDI in English, appears as a white or light yellow molten solid under normal temperature and pressure. It is a polyurethane material mainly synthesized from polyol, isocyanate and related additives. Compared with other materials, MDI has the advantages of high production efficiency, excellent comprehensive performance, and low damage to the human body. After years of development, the types of MDI have gradually become richer and can be roughly divided into pure MDI and polymerized MDI.

At present, my country’s MDI industry chain has basically taken shape. The upstream of the industrial chain is mainly the raw material industry, providing nitric acid, formaldehyde, carbon monoxide, liquid chlorine and other raw materials; the midstream is mainly the MDI production industry, responsible for the production and manufacturing of different types of MDI; the downstream is mainly oriented to application fields, among which pure MDI is mainly used In the fields of synthetic leather, TPU, spandex, shoe sole materials, PU slurry and other fields, polymeric MDI is mostly used in automobiles, white goods, pipes, construction, adhesives and other fields.

From the perspective of pure MDI market segments, TPU has the largest market share, accounting for 29.7%; followed by shoe sole raw materials, accounting for 23.1%; ranking third is PU slurry, accounting for 21.3%. From the perspective of aggregated MDI market segments, white home appliances accounted for the largest market share, accounting for 23.8%, followed by the automotive field, accounting for 7.3%.

According to the “Diphenylmethane Diisocyanate (MDI) Industry In-depth Market Research and Investment Strategy Suggestions Report 2023-2027” released by the Industrial Research Center shows that in recent years, my country’s economic level has gradually improved, MDI application fields have gradually expanded, and market demand has gradually increased. Coupled with the gradual advancement of MDI production technology and the gradual expansion of production capacity devices, its output is gradually increased. From the perspective of the pure MDI market, against the background of the rapid development of my country’s industry and manufacturing industry, the downstream demand for TPU has gradually increased, driving its total output to gradually increase. In 2022, my country’s total TPU output will be 648,000 tons, a year-on-year increase of 0.3%. Pure MDI is one of the main raw materials for the production of TPU, and the market demand is gradually increasing. Against this background, my country’s pure MDI output has shown a steady growth trend. In 2022, my country’s pure MDI output will be 1.243 million tons, a year-on-year increase of 5.8%.

From the perspective of the aggregated MDI market, as the consumption power of Chinese residents gradually increases, the popularity of white home appliances such as freezers and refrigerators gradually increases, and market demand gradually increases. Against this background, sales of white home appliances in my country have gradually increased. In 2022, my country’s white home appliance sales will be 371.01 billion yuan, accounting for 47.3% of the home appliance market. As an important raw material in the white home appliance market, the market demand for polymerized MDI has gradually increased, driving its production to gradually increase. In 2022, my country’s polymeric MDI output will be 1.916 million tons, a year-on-year increase of 6.3%.

Industry analysts said that my country’s MDI market is highly concentrated, and leading companies have emerged. The main foreign MDI companies include BASF, Dow Chemical, Covestro, Mitsui Chemicals, Huntsman, BC, Tosoh Chemical, etc. The main domestic MDI companies include Shengquan Group, Jingwei Pharmaceutical, Wanhua Chemical, Juli Chemical, Yinowi et al. Among them, Wanhua Chemical has a relatively high market share and has become a leading company in the industry. In the early days, because foreign MDI companies had more advanced production technology and higher product quality, they occupied most of my country’s market share. However, with the gradual rise of my country’s MDI companies, production technology has gradually improved, and market competitiveness has continued to increase, domestic substitution has gradually been realized.