The hottest U.S. set off a surge of MDI capacity e

The United States set off a tide of MDI capacity expansion, with capacity growth of 75% in the next six years

the United States set off a tide of MDI capacity expansion, with capacity growth of 75% in the next six years

November 22, 2018

the strong growth in demand for diphenylmethylene diisocyanate (MDI) in the world and North America, as well as the low-cost advantages of energy and raw materials in North America, have stimulated the United States to set off a new round of MDI capacity expansion boom. The new MDI capacity in the United States may change the trade flow and the balance of market supply and demand in the next few years

BASF plans to increase the capacity of its MDI unit in gaisma, Louisiana, from the current 300000 tons/year to 600000 tons/year of Chinese Coatings by 2020. Covestro plans to build a 500000 T/a MDI unit in Bay City, Texas, which is expected to be put into operation in 2024. When the device is started, covestro will shut down the existing 90000 T/a device, so that its total MDI capacity in North America will reach 740000 T/A. On November 16, Wanhua chemical, headquartered in Shandong, China, announced that the company had selected the convent of St. James Parish, Louisiana, as the location of its new 400000 ton/year MDI project. The plant is expected to start construction in 2019 and put into operation in 2021. These three expansion projects will increase the MDI capacity of the United States by 1.1 million tons/year by 2024. According to ANSYS data, the total MDI production capacity of the United States in 2018 was 1.46 million tons/year. The construction of this wave of new devices will increase the total MDI production capacity of the United States by 75% in the next six years. 2. Because the jaws of hydraulic universal experimental machines are often used

rob peacock, a market analysis consultant, said that from 2011 to 2017, the average annual growth rate of MDI demand in North America reached 7%, and it is expected that the average annual growth rate of MDI demand in the region will be slightly lower than 5% in the next five years. Peacock pointed out that the new MDI supply in the United States may reduce the average operating rate of MDI devices in North America to about 80%, and the MDI price in the region will bear downward pressure. Market analysts predict that by 2030, the MDI demand in the North American market will fully absorb all the new capacity in the United States

peacock said, "as the new MDI production capacity in North America is put into operation, the region's imports of up to 200000 tons/year may be replaced. However, Asian MDI may still continue to be exported to the West Coast market of the United States, because the logistics cost of MDI exported from Asia to the West Coast market of the United States is lower than the logistics cost of transporting from Texas and Louisiana to the West Coast market of the United States for the second experiment."

the United States will continue to maintain its position as a net exporter of MDI in which they are more interested in overall solutions. Most of the MDI products exported from the United States will be sold to Canada, Mexico and South America