Apr 30, 2025
The Chinese Polyurethane Market Supply Scale Shows Oscillatory Growth
China's Polymeric MDI Production from 2020 - 2024 (10,000 Tons)
| Year | Production |
| 2020 | - |
| 2021 | - |
| 2022 | - |
| 2023 | - |
| 2024 | 289 |
Capacity and Production in 2024: In 2024, China's MDI capacity was 4.99 million tons per year. The MDI capacity in Fujian and Ningbo was expanded, with the 800,000 - ton - per - year capacity in Fujian already in production. In 2024, China's MDI production was 4.36 million tons, with an operating rate of 87%. In 2024, China's polymeric MDI production was 2.89 million tons, a year - on - year increase of 7%.
Review of the Development of the Supply Scale from 2020 to 2024: From 2020-2024, the compound annual growth rate (CAGR) of China's MDI capacity was 10.6%. China's MDI production scale, export volume, and domestic sales volume increased year by year (except in 2022). In 2022, affected by the pandemic - related lockdowns, MDI manufacturers reduced their operating rates, and the annual production volume declined year - on - year. In 2023 - 2024, driven by the growth of domestic and foreign sales markets, the production of polymeric MDI increased.
The Chinese Polyurethane Market: The Import Volume of Polymeric MDI Shows a Decreasing Trend
Import Volume of China's Polymeric MDI from 2020-2024 (10,000 Tons)
| Year | Import Volume |
| 2020 | - |
| 2021 | - |
| 2022 | - |
| 2023 | - |
| 2024 | 22.4 |
From 2020-2024, the annual import volume of China's polymeric MDI generally showed an oscillatory downward trend. Firstly, domestic production capacity has been expanding year by year. Secondly, Japanese and South Korean manufacturers have strategically shifted their market focus. The main sources of China's polymeric MDI imports are Saudi Arabia, Japan, and South Korea. In Saudi Arabia, the import volume has remained relatively stable at around 120,000 tons in the past five years, accounting for 40% of the total. Japan mainly imports MDI mother liquor, and the volume of drum-packed goods has decreased, accounting for 33% of the total. In September 2024, the MDI capacity of South Korea's 锦湖三井 (Kumho Mitsui) expanded to 610,000 tons per year. In the fourth quarter, the export volume to China increased significantly month - on - month. Compared with Saudi Arabia and Japan, South Korean imports have a greater tariff advantage, accounting for 24% of the total.
The Chinese Polyurethane Market: The Export Volume of Polymeric MDI Shows an Increasing Trend
Export Volume of China's Polymeric MDI from 2020-2024 (10,000 Tons)
| Year | Export Volume |
| 2020 | - |
| 2021 | 100 (a sharp increase) |
| 2022 - 2024 | High-level operation |
| 2024 | 120 |
From 2020-2024, the annual export volume generally showed an oscillatory upward trend. Especially in 2021, the export volume of polymeric MDI soared to 1 million tons, and it remained at a high level from 2022 to 2024. With the cost-effectiveness of large-scale production expansion, China's international competitiveness has been continuously enhanced. However, it faces risks such as tariffs due to the deterioration of the international trade environment.
In 2024, China's export volume of polymeric MDI was 1.2 million tons, and the top 4 destinations accounted for 49% of the total. The export volume to the United States in 2024 was 268,000 tons, a year - on - year increase of 16%. The export volume to the Netherlands in 2024 was 130,000 tons, a year-on-year increase of 41%. The export volume to Russia in 2024 was 110,000 tons, a year-on-year increase of 2%. The export volume to Turkey in 2024 was 80,000 tons, a year - on - year increase of 19%.
The Chinese Polyurethane Market: The Production of Polyurethane Rigid Foam Increased by 8.4% Year-on-Year
| Product | 2024 Output Proportion | Year - on - Year Growth | 2020 - 2024 CAGR |
| Total PU Products | 100% | 6.1% | 3.6% |
| Polyurethane Rigid Foam | 18% | 8.4% | 3.4% |
Proportion of Output of Various Polyurethane Products
The production of polyurethane rigid foam showed a growth trend, while other products such as polyurethane soft foam, polyurethane resin, and CASE also had their own growth or change trends during this period.
The production of polyurethane rigid foam showed a growth trend, while other products such as polyurethane soft foam, polyurethane resin, and CASE also had their own growth or change trends during this period.
The Chinese Polyurethane Market: Polyurethane Rigid Foam
In 2024, in the traditional downstream fields of rigid foam, the consumption of polyurethane rigid foam in the home appliance and refrigerated container industries both showed double-digit year-on-year growth. Other downstream fields that contributed to the growth included the automotive and LNG industries.
Consumption and Year-on-Year Growth of Polyurethane Rigid Foam
| Field | 2024 Consumption Proportion | 2024 Year - on - Year Growth |
| Home Appliances | 21% | 11.9% |
| Construction | 35% | -1.0% |
| Transportation | 19% | 10.5% |
| Others | 25% | 9.8% |
Home Appliances: In 2024, the total consumption of rigid-foam polyurethane in the home appliance field was 1.51 million tons, a year-on-year increase of 11%.
- Refrigerators: In 2024, China's refrigerator production was 97.7 million units (+11.8%). The domestic sales volume in 2024 was 44.84 million units (+2.1%). In March and July, the state successively introduced two rounds of "trade-in" consumption subsidy policies, stimulating the demand for refrigerator replacement. The export volume in 2024 was 51.85 million units (+18.5%). Leading refrigerator enterprises continued to expand their overseas market layouts, either building factories overseas or exporting from domestic production bases. Compared with European and American refrigerator factories, they had significant advantages in efficient industrial chain operation and production costs.
- Freezers: In 2024, China's freezer production was 41.13 million units (+8.9%). The domestic sales volume in 2024 was 15.04 million units (6.0%). The domestic sales volume of freezers continued to decline, and the decline in commercial freezers was more obvious. The export volume in 2024 was 26.3 million units (+23.5%).
- Water Heaters: The domestic sales volume of electric storage water heaters in 2024 was 18.02 million units (+2.5%). Driven by the national "trade-in" consumption subsidy policy, the long-term low-level operation of the Chinese water heater market was reversed, achieving both volume and value growth, especially stimulating consumers' demand for medium - and high-priced water heaters. The export volume of electric storage water heaters in 2024 was 8.29 million units (+17.5%). Leading home appliance enterprises such as Haier, Midea, and Gemiqi increased their efforts to develop overseas markets.
Building Insulation: "High-quality" and "sustainable development" will be the main themes of the industry's development. In 2024, the total consumption of rigid - foam polyurethane in the building insulation field was 500,000 tons, a year-on-year decrease of 0.5%. The OCF market was affected by the downward trend of the real estate market and showed a slight decrease in recent years. The market increment of insulation boards mainly came from cold storage construction, but the development of the insulation board industry has slowed down in recent years. The bidding pressure in the insulation board industry has increased, and the "cost-reduction" demand has led to a phenomenon of product quality degradation. "Three-low boards" (low feeding ratio, low density, low viscosity) flooded the market. Material degradation will bring potential safety hazards and shorten the service life, which is not conducive to the long-term development of the industry. In 2024, the China Polyurethane Association, together with key OCF member enterprises, issued the "Joint Statement on Phasing out Short-Chain Chlorinated Paraffins". In 2025, four national standards related to cold storage construction will be revised, and participating enterprises will resolutely implement the phasing out of short-chain chlorinated paraffins to improve the quality of OCF products.
Insulation spraying is mainly applied in cold storage in China, and it is also used in fields such as roof waterproofing, fishing boats, and ski resorts. Relatively new application fields include LNG pipelines and on-land storage devices. Insulation of pipelines was restricted by local financial funds. In 2024, the scale of cold storage construction decreased (the number of agricultural subsidy-related projects increased relatively), and thermal pipeline projects in recent years were postponed or reduced. The structure of cold storage changed (from frozen cold storage to refrigerated cold storage). "Urban renewal" promoted the renovation and refurbishment demand of municipal infrastructure. The quota of FCFC-141 b foaming agent in the insulation spraying field was reduced to 3,000 tons in 2025 and was required to be completely phased out in 2026.
Impact of the Global Trade Situation on the Chinese Polyurethane Market: A Brief Analysis (2020-2024)
- 2020: Global Pandemic Impact: The global supply chain was disrupted, and downstream industries suspended work or reduced production. China, with proper prevention and control measures, was the first to restore its supply chain, and production orders flowed back, leading to an increase in the demand for the PU market. The Chinese rigid-foam index fluctuated widely, with a significant upward trend in the second half of the year.
- 2021: Overseas Plant Fluctuations + Domestic Demand Changes: North American cold waves and supply chain disruptions led to frequent force majeure events in overseas MDI plants. People's consumption concepts began to change. In China, the consumption concepts of fresh food and healthy home furnishings improved, driving the relatively high-speed growth of the cold chain construction and the formaldehyde-free board industry. The Chinese rigid-foam index rose first, then fell, and fluctuated.
- 2022: Russia-Ukraine Conflict + Domestic Demand Reduction: The Russia-Ukraine conflict pushed up the energy prices in Europe, causing local plants to reduce or suspend production. Aggregate MDI manufacturers in the Asia-Pacific region significantly increased their exports to Russia (+70.5%). Some downstream orders in China flowed out, and the consumption of rigid foam in China decreased year-on-year. The Chinese rigid-foam index was under pressure and fluctuated downward.
- 2023: Domestic Demand Recovery + Active Overseas Expansion: Insulation construction projects resumed work, and the rapid rise of fresh food e-commerce retail jointly drove the increase in the consumption of rigid foam in cold-chain storage and transportation. The growth rates of the home appliance and formaldehyde-free board industries in China were more prominent. Home appliance and automotive enterprises actively expanded overseas. The fluctuation range of the Chinese rigid-foam index narrowed.
- 2024: Slowing Growth + Tariff Expectations: The growth rate of rigid-foam consumption in China slowed down. The growth rates of home appliances and cold boxes were acceptable, but the construction industry was dragged down by engineering construction and product degradation. Under the expectation of an intensifying international situation, downstream and midstream enterprises in the rigid foam industry left the US market in advance. The Chinese rigid-foam index strengthened beyond expectations in the second half of the year.
Impact of the Global Trade Situation on the Chinese Polyurethane Market: A Brief Analysis (January - April 2025)
- Polymeric MDI: Significantly affected by tariff policy suppression, with expectations of policy relaxation, the market experienced an oversold rebound. China's export volume of polymeric MDI to the United States accounted for 22% of the total export volume. On February 12, 2025, the United States launched an anti-dumping investigation against Chinese MDI. On March 4, the United States imposed a 20% tariff on all Chinese products. On April 3, the United States announced a 34% reciprocal tariff on China, and on April 8, this reciprocal tariff rate increased to 84%. On April 10, China announced that the reciprocal tariff on products originating from the United States would be increased from 34% to 84%. The total tariff rate for China's exported polymeric MDI to the United States reached 135.5% (=6.5% + 25% + 20% + 84%). Starting from April 21, the Chinese polymeric MDI market rebounded. On April 24, the price of Shanghai-sourced goods in East China was 15,200 yuan/ton, and the price of Wanhua-sourced goods was 15,500 yuan/ton, which had rebounded to the market level on April 10.
- Rigid-Foam Polyether: Downstream enterprises were cautiously waiting and seeing, and the polyether price was under pressure and fell. China's export volume of polyether to the United States accounted for 3% of the total export volume. On March 4, the United States imposed a 20% tariff on all Chinese products, and on April 3, it announced a 34% reciprocal tariff on China. However, polyether was on the exemption list. The total tariff rate for China's exported polyether to the United States was 51.5% (=6.5%+25%+20%). In April, the decline rate of the Chinese polyether market increased. The main reason was that downstream enterprises of polyether, affected by the news of the tariff policy, were mostly cautiously waiting and seeing, reducing production and the procurement of raw materials such as polyether.
On Tuesday, April 22 (local time), US President Trump publicly stated that he recognized that the current tariffs on Chinese export products were too high and expected the tax rate to be significantly reduced. This marked a relaxation in Trump's attitude towards his signature tariff policy.
Topwin is one of the leading & professional manufacturers and solution providers with more than 20 years of experience, and has domestic top-level engineers in the silicone surfactant industry. Specializing in research and development, production, sales, and marketing of silicone-based special functional performance materials, Topwin also serves as a professional provider of technical services. Our products are mainly used in Polyurethane Foam, Corp Protection, Coatings and Inks, Leather & Textile, Release Coating for Paper and Film, Personal Care, and others.
