Benefiting from the promotion of spandex industry, PTMEG market demand continues to rise in the short term

PTMEG is a high-performance polyether polyol and the main raw material for the production of spandex products. The main upstream raw material is BDO. In the past five years, BDO production has been on a steady growth trend, increasing from 1.2 million tons in 2017 to 1.75 million tons in 2021. BDO output continues to rise, which is good for the development of the PTMEG industry. In terms of application market, PTMEG is mainly used in spandex, polyurethane and elastomers, of which spandex accounts for about 81%, and the proportion is showing a growing trend.

In China, about 80% of PTMEG is used in spandex production. Spandex is mainly used in the fields of home textiles, medical care and clothing. Affected by the COVID-19 epidemic in 2020, the demand for masks and protective clothing has increased, driving the demand for spandex to grow. In 2021, my country’s spandex demand will be approximately 750,000 tons, and the production capacity will reach 980,000 tons. Due to recurring epidemics, many companies are optimistic about the development of the spandex industry and have expanded production capacity. It is expected that the spandex industry will enter a stage of severe overcapacity in the future.

According to the “Polytetrahydrofuran (PTMEG) Industry In-depth Market Research and Investment Strategy Suggestions Report 2022-2026” released by the Industrial Research Center , benefiting from the development of the spandex industry, my country’s PTMEG market demand has grown steadily in the past five years, from 620,000 tons in 2017 to 840,000 tons in 2021. As spandex production capacity continues to expand, PTMEG market demand continues to rise, and the industry development prospects are good. Benefiting from the growth in demand, my country’s PTMEG production capacity and output have maintained a growth trend. By 2021, my country’s PTMEG production capacity will be approximately 900,000 tons, and output will reach 840,000 tons, with a high capacity utilization rate.

In terms of import and export, my country’s PTMEG export volume has continued to rise in the past five years, from 6,000 tons in 2017 to 44,000 tons in 2021. In terms of exports, my country’s PTMEG’s dependence on foreign countries continues to decrease, and imports continue to decrease, from 63,000 tons in 2017 to 45,000 tons in 2021. my country’s PTMEG is mainly imported from Taiwan, China, which accounts for 80% of my country’s total PTMEG imports.

In terms of production, the main PTMEG manufacturers in the world include BASF, Mitsubishi Chemical, DuPont, etc., with large production capacity and great influence in the global market. There are many PTMEG manufacturers in China, representative companies include Wanxiang Chemical, Shanxi Sanwei, Sanlong New Materials, etc., and they are currently in the stage of overcapacity.

From the perspective of industry development, in the short term due to the expansion of spandex production capacity, the PTMEG market demand has increased; but in the long term, both the spandex and PTMEG industries are in the stage of overcapacity, and the downstream market lacks growth momentum, resulting in industry weakness, so the PTMEG market development space has shrunk.

Industrial analysts said that PTMEG is mainly used in spandex production. In recent years, the downstream spandex market has been weak, and the demand for PTMEG is limited. However, affected by the COVID-19 epidemic, the demand for masks and protective clothing has increased, which has promoted the development of the spandex industry, thereby driving the steady growth of PTMEG demand. From the perspective of long-term development, both spandex and PTMEG are currently in the stage of overcapacity, and the application structure of PTMEG is relatively single. As the epidemic situation improves and the spandex market demand recovers, the demand for PTMEG will decline, and there will be less room for future market development.