1、 Development background: Policy driven industry development, with downstream demand expected to rebound

With the continuous expansion of the application scope of MDI, the country's attention to the MDI industry has gradually increased. In recent years, the country has introduced various policies to support and encourage the development of the MDI industry, providing new impetus for its development. The downstream consumer market of MDI is vast, with white goods accounting for a relatively large proportion, including household refrigerators, freezers, etc. The fourth quarter is the traditional peak season for consumption, and festivals such as Double Eleven and Double Twelve have a strong boosting effect on demand. It is expected that industry demand will improve.

2、 Development status: Import volume has decreased, while exports continue to increase

As one of the main suppliers of global MDI, China's pure MDI exports exceed imports in terms of import and export trade, and the import volume has maintained a downward trend since 2020. According to data from China Customs, China's net MDI exports totaled 92600 tons in the first three quarters of 2022, an increase of 1.44% compared to the same period in 2021; The total imported pure MDI was 48100 tons, a year-on-year decrease of 8.58%. China's pure MDI imports are decreasing year by year, while exports are showing a sustained growth trend.

3、 Market pattern: Oligopoly pattern formed, with production capacity ranking first in the world

The development of China's MDI industry is relatively stable, with companies such as Wanhua Chemical, BASF, Costron, and Huntsman forming the domestic supply pattern. Among them, Wanhua Chemical is the leading enterprise in China's MDI industry and the world's largest MDI manufacturing enterprise. From the perspective of global MDI enterprise production capacity in 2021, Wanhua Chemical has the largest MDI production capacity in the world, with a production capacity of 2.6 million tons/year, accounting for 27.5% of the total global production capacity; Next is BASF, with MDI production capacity reaching 1.79 million tons/year, accounting for 19%; Kesichuang's MDI production capacity is 1.66 million tons/year, accounting for 17.6%, ranking third.

4、 Development trend: Expanding downstream market demand, driving industry development and change

China's aggregated MDI is mainly used in fields such as refrigerators, cold storage, building insulation, and automobiles, while pure MDI applications are concentrated in the synthetic leather, shoe making, and textile industries. The use of polyurethane as wall insulation material started earlier in foreign countries, with over 50% being used in the construction industry downstream. Most of China's aggregated MDI is used for white goods, with relatively few other application scenarios laid out. With the continuous development of China's economy and the continuous improvement of people's living standards, the requirements for living environment and transportation will also continue to increase. The demand for building energy conservation, insulation, and lightweight automobiles will drive the development of the construction and automotive industries, and the demand for aggregated MDI will also continue to increase, thereby driving the development and transformation of the industry.