In the next two years, many polyurethane manufacturers around the world will expand their production capacity or build new production facilities. However, due to strong market demand, supply will remain tight until 2006.
Bordoschem of Hungary will soon produce a 80,000-ton/year PU raw material plant; BASF and Huntsman will cooperate with Chinese partners to build a 240,000-ton/year MDI plant in Shanghai in 2005; Bayer is currently expanding its scope. The production capacity of the MDI plant located in the United States, Spain and Germany will increase the total production capacity by 120,000 tons/year, bringing the total production capacity to 920,000 tons/year.
According to reports, currently the capacity utilization rate of BASF's MDI plant has reached 100%, and the capacity utilization rate of TDI plant is also above 85%. The situation of other major manufacturers is also similar. It is expected that the shortage of polyurethane raw materials will only be alleviated in the event of a global economic downturn.
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