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A new round of price increases for TPU is coming!
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A new round of price increases for TPU is coming!

  • Categories:Industry News
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  • Time of issue:2022-02-21
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[Top]

A new round of price increases for TPU is coming!

(Summary description)At the beginning of 2022, affected by the new crown pneumonia epidemic, storms, geographical factors and soaring crude oil prices, the chemical raw material sector has grown wildly.

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2022-02-21
  • Views:0
Information

At the beginning of 2022, due to the impact of the new crown pneumonia epidemic, storms, geographical factors and soaring crude oil prices, the chemical raw material sector has grown wildly.

BASF’s official website issued a notice saying that on February 15 or if the contract allows, the prices of PBT, PET, PA and other polymers or compounds in North America will be increased, of which PA will increase by US$0.3/lb (about 4,206 yuan/ton), PBT and PET rose by $0.2/lb (about 2,804 yuan/ton), of which the price of thermoplastic polyurethane (TPU) products rose by as much as $0.59/lb (about 8,270 yuan/ton).

Previously, on February 8, Wanhua Chemical (Yantai) Sales Co., Ltd. issued a notification letter, saying that due to the strong prices of crude oil, natural gas and other bulk raw materials, the prices of the main upstream raw materials of TPU, such as adipic acid (AA), continued to rise, and the market supply was increasingly trending. tight. Therefore, the company decided to increase the price of all TPUs in Wanhua's domestic market from February 10th by 2,000 yuan per ton!

Raw materials start crazy rising mode

According to institutional statistics, since the second half of 2020, TPU raw materials have started a frantic rise mode. The important raw material, diphenylmethane diisocyanate (MDI), has frequently experienced force majeure in overseas plants. Only Wanhua is expanding or building new plants in China. The raw material 1,4-butanediol (BDO) has been reduced by BASF and the demand for downstream spandex has increased. As well as the boost of degradable plastics by the "plastic restriction order", the potential of polybutylene terephthalate-adipate (PBAT) has been promoted, and the elimination risk faced by the calcium carbide process in the state of high energy consumption, the supply and demand of BDO market are showing The new pattern; and the AA market outlook, the overall upstream TPU raw materials rose wildly, driving the price of TPU to rise all the way, causing a lot of attention.

Compared with general plastic and rubber materials, TPU has excellent performance, good processing performance and excellent environmental protection performance. It has both the high elasticity of rubber materials and the high strength of engineering plastics. And it can be reused after disposal, which meets the requirements of circular economy and sustainable development, and is one of the main development directions of new materials in the future.

Under the guidance of the "double carbon" goal, my country's TPU industry is in the initial stage of development and is a promising sunrise industry.

Domestic TPU production capacity

my country's TPU industry is developing rapidly. At present, it has surpassed Europe and the United States to become the world's largest TPU consumer market, and has a broader market prospect. From 2017 to 2021, the average annual compound growth rate of domestic TPU production reached 13.9%, of which the total output in 2021 was 645,000 tons, a year-on-year increase of 12.3%. From the perspective of production scale, the domestic TPU industry presents a competitive pattern of "two superpowers and many strong". The production scale of Wanhua and Huafeng is comparable. The total output of the two companies in 2021 will account for about 37% of the total domestic output, while the top ten output The total output of production enterprises in 2021 will account for about 78% of the total domestic output, as shown in Table 1.

Table 1 TOP10 distribution of domestic TPU production capacity

(Data source: Longzhong Information)

Competitive landscape of domestic TPU industry

In recent years, with the rapid expansion of domestic TPU production capacity, the TPU products of domestic enterprises are mainly concentrated in the low-end market, and the coverage of mid-to-high-end products is still far behind that of foreign-funded enterprises. The market competition of TPU manufacturers is also becoming increasingly fierce, resulting in a gradual oversupply of low-end TPUs and a shortage of high-end products. In 2021, the average operating rate of the domestic TPU industry will only be 5-60%.

At present, my country's domestic TPU production enterprises can be divided into three types. The first type: chemical enterprises represented by Wanhua Chemical and Huafeng Group with large-scale production capacity of major raw materials such as MDI, polyol or adipic acid. The characteristics of this type of enterprises are that they have a solid chemical production base, a long industrial chain, and a large overall scale. The business field is not limited to the TPU industry, and the low-cost advantage is obvious; the second category: Represented by Meirui New Materials and Shanghai Jintang Technology An enterprise focusing on the R&D and production of TPU with technological innovation and professional services as its core. Such enterprises have grown rapidly in recent years, have strong technical strength, and have shown competitive advantages in market development, customer service, etc., and have developed rapidly in market segments; the third category: a large number of small enterprises with single products and low technical content , There are different degrees of safety or environmental protection problems in the production environment, and the competitiveness of such enterprises is relatively insufficient.

Prospects and future trends

01 | The expansion of demand promotes the acceleration of technological innovation and further promotes domestic substitution

TPU is a sunrise industry in the new polymer material industry, with a wide range of downstream applications. Due to its excellent characteristics unmatched by other plastic materials, TPU has become an important part of the material industry, and the downstream application fields have continued to expand. Industry concentration is further Improvement, technological innovation technology will further promote domestic substitution, see Table 2.

Table 2 Prediction of the future development trend of TPU in my country

(Source: Prospective Industry Research Institute)

02 | The market has broad prospects, and consumption will reach 900,000 tons by 2026

At present, my country's TPU industry is in a period of rapid growth, and has become an important part of the material industry. It is a key material for industrial transformation and upgrading in the high-end manufacturing field, and has broad market prospects. It is expected that its consumption will reach about 900,000 tons by 2026, with a compound annual growth rate of about 10% in the next five years.

Source: BASF official website, Wanhua Chemical official website, Longzhong Information, Qianzhan Industry Research Institute, UTPE Elastomer Portal, etc., edited by China Chemical Industry Weekly.

 

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