China MDI Industry Development Trend Analysis and Investment Prospect Forecast Report (2023-2030)

MDI is the English abbreviation of diphenylmethane diisocyanate, and MDI is the most important raw material for the production of polyurethane. At present, the industrial production method of MDI in the world is to use aniline as raw material, reduce it to crude MDI by phosgene method, and then further separate pure MDI and polymerized MDI.

MDI is an important precursor for the manufacture of polyurethane, and its production process mainly includes phosgene and non-phosgene. The phosgene method is the mainstream technology for the industrial production of isocyanate, and it is also the only method that can realize the large-scale production of isocyanate, but phosgene is highly toxic, and the reaction needs to be carried out under strong acid conditions, which has high requirements for equipment and technology.

MDI production methods and their advantages and disadvantages

way	merit	Pros and cons:	Application Enterprises
Phosgenization	The process is mature and the reaction yield is high	It is necessary to use highly toxic phosgene, and hydrogen chloride is generated during the reaction, which is seriously corrosive to the equipment, and the yield and quality of pure MDI are also low	Manufacturers basically use phosgene to produce MDI.
Non-phosgene	The pollution is less and the yield is high	Most of them are in the research stage and have not fully realized industrial production	Basically, there is no corporate use

Source: Compiled by Guanyan Tianxia

MDI is one of the products with the highest technical barriers among chemical products, and the production management is difficult, and the global oligopoly competition pattern is present. At present, the listed companies in the global MDI industry include Wanhua Chemical, BASF, Covestro, Huntsman, Dow Chemical, etc., among which Wanhua Chemical is the leading enterprise in the MDI industry in mainland China and the world's largest MDI manufacturing enterprise, with nine production bases and factories in Yantai, Penglai, Ningbo, Sichuan, Fujian, Zhuhai, Ningxia and Hungary, forming a strong production and operation network; In addition, five R&D centers in Yantai, Ningbo, Beijing, North America and Europe have been completed, and subsidiaries and offices have been set up in more than ten countries and regions such as Europe, the United States and Japan, committed to providing more competitive products and comprehensive solutions for global customers.

Major companies in the global MDI industry

Company abbreviation	Country of affiliation	Founded	Main Introduction
Wanhua Chemical	China	16 December 1998	Wanhua Chemical has always adhered to scientific and technological innovation as its first core competitiveness, continuously optimized its industrial structure, and its business covers four major industrial clusters: polyurethane, petrochemical, fine chemicals and emerging materials.
BASF	Germany	April 6, 1865	It is a German chemical company and the world's largest chemical company by market capitalization. BASF's business in Greater China includes petrochemicals, intermediates, performance materials, monomers, dispersions and resins, performance chemicals, catalysts, coatings, care chemicals, nutrition and health, and agricultural solutions.
Covestro	Germany	1863	The main business is the production and sales of high-performance polymers and polyurethanes. Covestro was founded in 1863 as the Imperial Chemical Company in Leverkusen.
Huntsman	United States	1970	The company's global headquarters is located in The Woodlands, north of Houston, Texas.
Taoji Chemical	United States	1897	It is a century-old store in the global chemical industry. As the world's second-largest multinational company in the chemical industry, it provides a wide range of products and services to customers in 160 countries and regions around the world with its leading specialty chemicals, advanced materials, agricultural science and plastics businesses, which are used in fast-growing markets such as electronics, water treatment, energy, coatings and agriculture.

Source: Compiled by Guanyan Tianxia

In 2022, the total global MDI production capacity will be about 9.9 million tons/year, of which Wanhua Chemical's annual production capacity will reach 3.05 million tons, accounting for 31% of the global production capacity, ranking first in the world, followed by BASF with an annual production capacity of 1.81 million tons, Covestro with an annual production capacity of 1.77 million tons, Dow Chemical with an annual production capacity of 1.36 million tons, and Huntsman with an annual production capacity of 1.4 million tons, which together account for more than 88% of the market share.

Annual production of major companies in the global MDI industry in 2022

Company abbreviation	Annual output (10,000 tons/year)
Wanhua Chemical	305
BASF	181
Covestro	177
Huntsman	140
Taoji Chemical	136

Source: Oriental Fortune Network, Guanyan Tianxia

"Green environmental protection and low-carbon life" is the requirement of "carbon neutrality" in the mainland. In December 2022, the European Parliament and the European Council reached a provisional agreement to determine that the EU's "carbon tariff" will begin trial operation in October 2023, with a transition period until the end of 2025, officially imposed in 2026, and fully implemented by 2034. At this point, the EU will become the first economy in the world to impose a "carbon tariff". This means that high-carbon emitters will have to transform.

In the context of "carbon neutrality", relevant enterprises in the MDI industry have also made corresponding adjustments. In November 2023, MDI, a subsidiary of Wanhua Chemical, obtained international sustainability and carbon certification; In October, BASF's plant in Korea started supplying biomass-balanced MDI products. In March, Huntsman's production base in Rotterdam, the Netherlands obtained ISCC PLUS certification; In addition, during the 6th Shanghai International Import Expo, Covestro and Huafon Group signed a strategic cooperation letter of intent to actively explore and expand the application of low-carbon raw materials from Covestro in Huafon series products and jointly promote the development of circular economy.

The dynamics of enterprises related to various MDI industries in the context of "carbon neutrality".

Company abbreviation	Released	dynamic
Wanhua Chemical	November 7, 2023	Wanhua Chemical's six products, MDI, TDI, IPDI, PMMA, TPU and bio-based polyether, have obtained the International Sustainability and Carbon Certification (ISCC PLUS), which means that the company has the ability to supply products containing renewable and recyclable raw materials to customers.
BASF	February 14, 2022	BASF continues to expand its methylene diphenyl diisocyanate (MDI) portfolio with the launch of Lupranat® ZERO, the first aromatic isocyanate with no greenhouse gas emissions.
BASF	October 2023	BASF's plant in Korea starts supplying biomass-balanced MDI products.
Covestro	2021	Covestro and Haier have actively responded to the national "dual carbon" goal and promoted the transformation of the home appliance industry to green and low-carbon, and have jointly built the first high-efficiency and energy-saving refrigerator using low-carbon footprint insulation materials.
BASF	2022	The low-carbon green refrigerator jointly launched by Covestro and Midea Refrigerator was unveiled at the CIIE, and the insulation layer of this refrigerator is made of low-carbon footprint polyurethane (low-carbon footprint MDI certified by ISCC Plus mass balance) based on the mass balance method
BASF	2023	During the 6th Shanghai International Import Expo, Covestro and Huafon Group signed a strategic cooperation letter of intent to actively explore and expand the application of low-carbon raw materials from Covestro in Huafon series products and jointly promote the development of circular economy.
Huntsman	March 6, 2023	Huntsman Corporation announced that its production site in Rotterdam, the Netherlands, has obtained ISCC PLUS certification and will be able to provide customers with MDI products based on the mass balance method in the future.

Source: Compiled by Guanyan Tianxia

In recent years, in order to focus on the development of the MDI industry, the mainland and various departments have issued a series of policies, such as the notice of the Hebei Provincial People's Government on the "14th Five-Year Plan for the High-quality Development of Hebei Province's Manufacturing Industry" in January 2022, which proposes to focus on the development of methylene diphenyl diisocyanate (MDI), polyadipic acid/butylene terephthalate (PBAT) and other degradable plastics, copolymer silicon PC, and other synthetic materials and intermediates to form a form of PVC, TDI, MDI, polypropylene, The polyester-based synthetic material industry cluster will build an important synthetic material production base in the north of the mainland.

Policies related to the MDI industry in mainland China and provinces

Level	Released	Issuing Authority	The name of the policy	Main content:
Provincial	2022-01-17	Hebei Provincial People's Government	Notice on the issuance of the "14th Five-Year Plan" for the high-quality development of Hebei Province's manufacturing industry	Focus on the development of diphenylmethane diisocyanate (MDI), polyadipic acid/butylene terephthalate (PBAT) and other degradable plastics, copolymer silicon PC, and other synthetic materials and intermediates, the formation of PVC, TDI, MDI, polypropylene, polyester-based synthetic material industry cluster, to build an important synthetic material production base in the north of the mainland.
Provincial	2021-12-07	The People's Government of Ningxia Hui Autonomous Region	Notice on the issuance of the "14th Five-Year Plan" development plan of Ningdong Energy and Chemical Base	Key projects of high-performance fiber material industry: Wanhua MDI purification and BDO and vinyl acetate series projects.
Provincial	2021-08-03	Municipal government	Notice on the issuance of the "14th Five-Year Plan" (2021-2025) for the high-quality development of Chongqing's manufacturing industry	Promote the mutual supply of raw materials and products such as natural gas, MDI, and adipic acid, strengthen the coordination of off-peak production, and continuously increase the supply of high-quality raw materials for regional economic and social development.
Provincial	2021-06-29	Fujian Provincial People's Government	Notice on the issuance of the special plan for the high-quality development of the manufacturing industry in Fujian Province during the 14th Five-Year Plan	Relying on Wanhua Chemical (Fujian) Industrial Park, we will improve TDI production technology and production capacity, add MDI products, and extend the development of polyurethane products.
Provincial	2021-04-30	Shanxi Provincial People's Government	Notice on the issuance of the "14th Five-Year Plan" for new materials in Shanxi Province	Accelerate the development of high-end benzene deep-processing products such as MDI and TDI, extend the industrial chain of coal coking deep processing, and create a new pattern of circular economy industry of coal coking materials with "chemical coking and chemical materials at the same time".
National	2022-04-07	Department of Raw Materials Industry	Guiding Opinions on Promoting the High-quality Development of the Petrochemical Industry in the 14th Five-Year Plan	Focusing on the new generation of information technology, biotechnology, new energy, high-end equipment and other strategic emerging industries, increase the variety and specifications of organic fluorine silicone, polyurethane, polyamide and other materials, and accelerate the development of high-end polyolefins, electronic chemicals, industrial special gases, high-performance rubber and plastic materials, high-performance fibers, bio-based materials, special lubricating grease and other products.

Source: WSS

China is the world's largest producer of MDI and a net exporter of MDI. As the application scope of MDI continues to expand, the demand for MDI industry is gradually increasing. According to the data, the annual output of MDI of Wanhua Chemical in mainland China has reached 3.05 million tons/year.

In addition, on November 8, 2023, the website of the Management Committee of Ningdong Energy and Chemical Base released good news that the 300,000 tons/year MDI separation unit of Wanhua Chemical (Ningxia) Co., Ltd. successfully produced qualified products, achieving a successful start-up, and the second batch of major projects to be started in Ningdong Base in 2022 After more than 300 days, it is a world-class MDI separation unit, and the completion of the project also plays a leading role in promoting industrial transformation and upgrading, accelerating the conversion of old and new kinetic energy, and promoting high-quality economic development.

Note: The above information is for reference only, please refer to the body of the report for details.

The "China MDI Industry Development Trend Analysis and Investment Prospect Forecast Report (2023-2030)" released by Guanyan Report Network covers the latest industry data, market hotspots, policy planning, competitive intelligence, market prospect forecast, investment strategy, etc. It is supplemented by a large number of intuitive charts to help enterprises in the industry accurately grasp the development trend of the industry, market trends, and correctly formulate corporate competitive strategies and investment strategies. Based on authoritative data released by the National Bureau of Statistics, the General Administration of Customs and the State Information Center, this report combines the environment in which the industry is located, and conducts market research and analysis from multiple perspectives such as theory to practice, from macro to micro.

The industry report is one of the important decision-making bases for enterprises, relevant investment companies and government departments in the industry to accurately grasp the development trend of the industry, gain insight into the industry competition pattern, avoid business and investment risks, and formulate correct competition and investment strategy decisions. This report is an indispensable and important tool for a comprehensive understanding of the industry and for investing in the industry. Over the years, Guanyan has provided professional industry analysis reports for tens of thousands of enterprises, consulting institutions, financial institutions, industry associations, individual investors, etc., and its customers include Huawei, PetroChina, China Telecom, China Construction, HP, Disney and other leading enterprises at home and abroad, and have been widely recognized by customers.

【Table of Contents】

Chapter 1 Overview of the development of China's MDI industry from 2019 to 2023

Section 1 Overview of the development of the MDI industry

1. Definition of MDI industry

2. Analysis of MDI characteristics

3. Introduction to the basic situation of the MDI industry

Fourth, the MDI industry business model

1. Production mode

2. Procurement mode

3. Sales/service model

5. Analysis of the main demand of the MDI industry

Section 2 Life Cycle Analysis of MDI Industry in China

1. Overview of the MDI industry life cycle theory

2. Life cycle analysis of the MDI industry

Section 3 Analysis of Economic Indicators of MDI Industry

1. Profitability analysis of the MDI industry

2. Economic cycle analysis of the MDI industry

3. Analysis of the improvement space of added value in the MDI industry

Chapter 2 Analysis of the development status of the global MDI industry market from 2019 to 2023

Section 1 Review of the development history of the global MDI industry

Section 2 Market size and regional distribution of the global MDI industry

Section 3 Regional Market Analysis of Asian MDI Industry

1. Analysis of the current situation of the MDI industry market in Asia

2. Analysis of the market size and market demand of the Asian MDI industry

3. Analysis of the market prospect of the Asian MDI industry

Section 4 North America MDI Industry Regional Market Analysis

1. Analysis of the current market status of the MDI industry in North America

2. Analysis of the market size and market demand of the North American MDI industry

3. Market prospect analysis of North American MDI industry

Section 5 Regional Market Analysis of the European MDI Industry

1. Analysis of the current situation of the European MDI industry market

2. Analysis of the market size and market demand of the European MDI industry

3. Analysis of the market prospect of the European MDI industry

Section 6 Forecast of the distribution trend of the world MDI industry from 2023 to 2030

Section 7 Global MDI Industry Market Size Forecast from 2023 to 2030

Chapter 3 Analysis of the Industrial Development Environment of China's MDI Industry

Section 1 Analysis of the Macroeconomic Environment of the Mainland

Section 2 Analysis of the Impact of the Macroeconomic Environment on the MDI Industry in China

Section 3 Analysis of the Policy Environment of China's MDI Industry

1. The current situation of the industry regulatory system

Second, the main policies and regulations of the industry

3. Main industry standards

Section 4 Analysis of the impact of the policy environment on the MDI industry

Section 5 Analysis of the Industrial and Social Environment of China's MDI Industry

Chapter 4 Operation of China's MDI Industry

Section 1 Introduction to the development of China's MDI industry

1. Review of the development process of the industry

2. Analysis of industry innovation

3. Analysis of the development characteristics of the industry

Section 2 Market Size Analysis of China's MDI Industry

1. Factors affecting the market size of China's MDI industry

Second, the market size of China's MDI industry

3. Analysis of the market size of China's MDI industry

Section 3 Analysis of the supply situation of China's MDI industry

1. The supply scale of China's MDI industry

Second, the supply characteristics of China's MDI industry

Section 4 Analysis of the demand of China's MDI industry

1. The scale of demand in China's MDI industry

2. Characteristics of the demand of China's MDI industry

Section 5 Analysis of Supply and Demand Balance in China's MDI Industry

Chapter 5 Analysis of the Industrial Chain and Market Segments of China's MDI Industry

Section 1 Overview of the industrial chain of China's MDI industry

1. Introduction to the principle of the industrial chain model

Second, the operation mechanism of the industrial chain

3. Diagram of the industrial chain of the MDI industry

Section 2 Analysis of the industrial chain of China's MDI industry

First, the development status of upstream industries

2. Analysis of the impact of the upstream industry on the MDI industry

Third, the development status of downstream industries

4. Analysis of the impact of downstream industries on the MDI industry

Section 3 Analysis of MDI Industry Segments in China

First, market segment one

Second, market segment two

Chapter 6 2019-2023 China MDI Industry Market Competition Analysis

Section 1 Analysis of the current situation of competition in China's MDI industry

1. Analysis of the competitive landscape of China's MDI industry

2. Analysis of major brands in China's MDI industry

Section 2 Analysis of the Concentration of MDI Industry in China

1. Analysis of the influencing factors of market concentration in China's MDI industry

2. Analysis of the market concentration of China's MDI industry

Section 3 Analysis of the Competition Characteristics of China's MDI Industry

1. Characteristics of regional distribution of enterprises

Second, the distribution characteristics of enterprise scale

3. Characteristics of the distribution of enterprise ownership

Chapter 7 2019-2023 China MDI Industry Model Analysis

Section 1 Analysis of the Competition Structure of China's MDI Industry (Porter's Five Forces Model)

1. The principle of Porter's Five Forces Model

Second, the bargaining power of suppliers

3. Bargaining power of buyers

Fourth, the threat of new entrants

5. Threat of substitutes

Sixth, the degree of competition in the same industry

7. Conclusion of Porter's Five Forces Model

Section 2 SWOT Analysis of China's MDI Industry

1. Overview of the SOWT model

Second, the analysis of industry advantages

Third, the disadvantages of the industry

Fourth, industry opportunities

5. Industry threats

6. SWOT analysis conclusion of China's MDI industry

Section 3 Analysis of the Competitive Environment of China's MDI Industry (PEST)

1. Overview of the PEST model

Second, policy factors

3. Economic factors

Fourth, social factors

Fifth, technical factors

6. Conclusions of PEST model analysis

Chapter 8 Analysis of the Demand Characteristics and Dynamics of China's MDI Industry from 2019 to 2023

Section 1 Market dynamics of China's MDI industry

Section 2 Analysis of the characteristics of the consumer market in China's MDI industry

1. Demand preference

Second, price preference

3. Brand preference

4. Other preferences

Section 3 Analysis of the Cost Structure of the MDI Industry

Section 4 Analysis of Price Influencing Factors in MDI Industry

1. Supply and demand factors

Second, the cost factor

3. Other factors

Section 5 Analysis of the current price situation of China's MDI industry

Section 6 Forecast of the average price trend of China's MDI industry

1. Analysis of the average price trend of China's MDI industry

2. Factors influencing the average price change of China's MDI industry

Chapter 9 Monitoring of the operation data of the industry to which China's MDI industry belongs

Section 1 Analysis of the overall scale of China's MDI industry

1. Analysis of the number and structure of enterprises

2. Analysis of the scale of industry assets

Section 2 Analysis of Production, Sales and Expenses of China's MDI Industry

1. Current assets

Second, sales revenue analysis

3. Liability analysis

Fourth, the analysis of profit scale

5. Analysis of output value

Section 3 Analysis of the Financial Indicators of China's MDI Industry

1. Industry profitability analysis

2. Analysis of the solvency of the industry

3. Analysis of industry operating capabilities

Fourth, the analysis of industry development capabilities

Chapter 10 Analysis of the Regional Market Status of China's MDI Industry from 2019 to 2023

Section 1 Analysis of the regional market size of China's MDI industry

1. Factors affecting the regional market distribution of the MDI industry

2. Regional market distribution of China's MDI industry

Section 2 Market Analysis of MDI Industry in East China

1. Overview of East China

2. Analysis of the economic environment in East China

3. Market analysis of MDI industry in East China

(1) The market size of the MDI industry in East China

(2) The current market status of the MDI industry in South China

(3) Forecast of the market size of the MDI industry in East China

Section 3 Market Analysis in Central China

1. Overview of Central China

2. Analysis of the economic environment in central China

3. Market analysis of MDI industry in Central China

(1) The market size of the MDI industry in central China

(2) The market status of the MDI industry in central China

(3) Forecast of the market size of the MDI industry in Central China

Section 4 Market Analysis in South China

1. Overview of South China

2. Analysis of the economic environment in South China

3. Market analysis of MDI industry in South China

(1) The market size of the MDI industry in South China

(2) The current market status of the MDI industry in South China

(3) Forecast of the market size of the MDI industry in South China

Section 5 MDI Industry Market Analysis in North China

1. Overview of North China

2. Analysis of the economic environment in North China

3. Market analysis of MDI industry in North China

(1) The market size of the MDI industry in North China

(2) The current situation of the MDI industry market in North China

(3) Forecast of the market size of the MDI industry in North China

Section 6 Market Analysis in Northeast China

1. Overview of the Northeast region

2. Analysis of the economic environment in Northeast China

3. Market analysis of MDI industry in Northeast China

(1) The market size of the MDI industry in Northeast China

(2) The current situation of the MDI industry market in Northeast China

(3) Forecast of the market size of the MDI industry in Northeast China

Section 7 Market Analysis in Southwest China

1. Overview of the Southwest Region

2. Analysis of the economic environment in southwest China

3. Market analysis of MDI industry in southwest China

(1) The market size of the MDI industry in southwest China

(2) The current situation of the MDI industry market in southwest China

(3) Forecast of the market size of the MDI industry in southwest China

Section 8 Market Analysis in Northwest China

1. Overview of the Northwest Territories

2. Analysis of the economic environment in Northwest China

3. Market analysis of MDI industry in Northwest China

(1) The market size of the MDI industry in Northwest China

(2) The market status of the MDI industry in Northwest China

(3) Forecast of the market size of the MDI industry in Northwest China

11. MDI Industry Company Analysis (Adjusted with Data Update)

Section 1 Enterprises

First, the company profile

Second, the main products

3. Operation

1. Main economic indicators

2. Analysis of corporate profitability

3. Analysis of corporate solvency

4. Analysis of enterprise operation capabilities

5. Analysis of enterprise growth ability

Fourth, the company's advantages analysis

Section 2: Enterprises

First, the company profile

Second, the main products

3. Operation

Fourth, the company's advantages and disadvantages analysis

Section 3: Enterprises

First, the company profile

Second, the main products

3. Operation