According to incomplete statistics, as of the end of 2016, the global total capacity of MDI has reached 8.595 million tons. From 2014 to 2015, the capacity of domestic MDI has experienced the rapid growth. The total capacity has soared to 3.09 million tons in 2015 from 214 million tons in 2013, and the overall increase is up to 44%, and the average annual growth rate is up to 20%. At present, the capacity of  domestic MDI is up to 3.09 million tons, accounting for 36% of the global total capacity. Nearly 30% of domestic MDI was exported to the world by Chemchain. MDI in China has become the world’s benchmark for the MDI market.

Reversal Happens in Trade Flow

From 2007 to 2016, China has been the world’s leading country to import MDI. 60% of global demand growth is from China. At the same time, with the rapid growth of the capacity of domestic MDI, self-sufficiency rate is also rising, and import volume have a significant reduction, but still need to import MDI from the world, and import volume still account for about 30% of global trade volume.

As the domestic supply and demand gradually balance, the import volume is decreasing, and the average import price is also decreasing. The average import price of MDI in 2014 is US $ 2014 (t), and decreases to $ 1504 in 2015 and $ 1488 in 2016.

Since 2007, domestic exports of MDI has increased rapidly, especially in 2014. China has gradually become the world’s major MDI exporters. From2013 to 2016, the average prices of MDI for import and export both fall year by year. In 2017, some foreign MDI devices still continue to shut down, which gives  the domestic supply more opportunities. The enterprises like Wanhua, BASF, COVESTRO and so on will focus on domestic and international markets. According to Chemchain, in recent years, MDI’s export volume is increasing year by year. At the same time, the domestic export MDI’s export rebate has been adjusted from the previous 13% to the current 17%, which will bring domestic enterprise to export MDI chances.

MDI :http://www.chemchain.com/101-68-8.html