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1. Monthly News Headlines
www.pudaily.com Chinese Polyurethane Monthly Report Version: 201105
BASF Systems House Broke Ground in
Tianjin.
BASF Warns on Overexpansion in Asia.
BASF to Build World's Largest Single-Train
TDI Plant in Europe.
Bayer MaterialScience to Invest $120M in
Texas Plant.
Bayer is to Expand Its MDI and HDI Capacity
in Shanghai.
Broad Application of Polyurethane in
High–speed Railway.
Chery Auto, Bayer Partner up on Lightweight
Materials for Vehicles.
Cangzhou Dahua Optimizes TDI Energy
Utilization.
Dow Chemical Expects Lawsuit Decision in
Case Versus Kuwait Petrochemical.
DuPont Packaging & Industrial Polymers to
Increase Capacity at Dordrecht, Netherland.
Elevance Renewable Sciences and Royal
DSM to Collaborate for Bio-based Specialty
Thermoplastic Materials.
Fujian Putian 10,000 tons/year
Water-Soluble Polyurethane Project Goes
Into Production..
Huafon Microfibre (Shanghai) Co., Ltd Costs
ERU 9 Million to Purchase Production Lines.
INVISTA Opens Spandex Plant Expansion in
Foshan, China.
LANXESS Completes Acquisition of DSM
Elastomers.
Perstorp Increases Polyol Capacity With
Investment in China.
Polyurethane Adhesive Plant Nanjing Fuller
Opens Up in China.
PPG Issues 2010 Corporate Sustainability
Report.
Polyurethane Adhesive Plant Nanjing Fuller
Opens Up in China.
Shanghai Dongda Chemical's Polyurethane
Project Begins Construction.
SABIC, Asahi Kasei and Mitsubishi Form
Joint Venture.
Sumitomo Chemical Sets Up Dalian Plant to
Seize Auto Raw Material Market.
US-based Momentive to Sell Wood Resin
Business.
Yantai Wanhua Conducts the MDI Expansion
Plan in Ningbo Base.
Yantai Wanhua Polyurethanes and
Huntsman Sign PO/MTBE License
Agreement.
2. Polyurethane Market Analysis 2.1 TDI
In May, stabilization is the key tone of domestic TDI prices. Suffered costs pressures, northern TDI
suppliers make efforts to regulate up quotations, aiming to push up the market prices. In early May,
quotations for home-made materials increase by RMB200/ton and at the end of May, the quotations
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Chinese Polyurethane Monthly Report 201105
ascend by RMB500/ton collectively after the industrial conference held by domestic major TDI producers.
However, BASF Shanghai and Bayer Shanghai take steps to quote high while transact at low prices, and
thus the market prices lack motives to climb up.
Additionally, TDI USD quotations in Hong Kong market prove to be high because of the supply
tightness while approaching to late May, the quotation goes down gradually but it still much higher than
the domestic RMB price, and thus mainland traders show no any inclination to purchase for the moment.
Therefore, stocks from Hong Kong are mainly exported to Southeast Asia areas.
Table 1: Monthly TDI RMB and USD Prices Comparison
Types Unit May Average Price April Average Price Fluctuation Remarks
China RMB/ton 19800-20650 20125-20675 -325, -25 Drum/Delivery
Imports USD/ton 2558-2600 2430-2488 128, 112 Drum/CIF
Note: RMB Cost =USD CIF price*(1+17%)*(1+6.5%)*(1+Anti-dumping Rate) * Exchange Rate +Import Port
Charge (Only available for calculating the costs of China TDI imports. 17%: VAT rate, 6.5%: import duty
rate; Anti-dumping rate depends on origins).
Graph 1: TDI Weekly Price Trend from 2010 to 2011
Source: PUdaily.com
2000
2200
2400
2600
2800
3000
3200
3400
1-Jan-10
5-Feb-10
12-Mar-10
16-Apr-10
21-May-10
25-Jun-10
30-Jul-10
3-Sep-10
8-Oct-10
12-Nov-10
17-Dec-10
21-Jan-11
25-Feb-11
1-Apr-11
6-May-11
10-Jun-11
Date
US
D/M
T
18000
19500
21000
22500
24000
25500
27000
28500
RM
B/M
T
USDRMB
Note: ①RMB refers to E-China, Drum/Delivery;
USD refers to Spot Price② Drum/CIF China
2.1.1Upstream Feedstocks--Toluene
In May, domestic toluene market glide down slightly and at the beginning of this month, shocked by
the continuously descending oil prices, domestic toluene pries follow up to drop. In addition, toluene
market overseas plummets sharply and market players mainly hold pessimistic attitudes towards later
market. At the end of this month, as oil prices continue the ups and downs, domestic toluene market
continues the unsteadiness as well.
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2.1.2 Asian TDI Facility Latest Movement
★ CNGC Gansu Yinguang Chemical Industry
Group Co.,Ltd ’s two sets of 50ktpa facilities run
100% operation rates with sufficient inventory;
★ Cangzhou Dahua Chemical’s 30ktpa and
50ktpa facilities operate with high loads and the
maintenance plan of its 50ktpa device has been
postponed to July;
★Yantai Juli Chemical’s 30ktpa facility operates
with basically full loads;
★Liaoning Northern Jinhua Polyurethane Co.,Ltd
conducts maintenance in the third week and
restarts in the fourth week of this month;
★Taiyuan Bluestar’s 40ktpa device restarts in the
fourth week of this month and this facility shut
down for expansion in January, 2011. Now, the
capacity has been expanded to 40ktpa from
30ktpa;
★BASF Shanghai plans to conduct maintenance
of its 160ktpa facility on May 23 for about one
month;
★South Korean KPX’s 100ktpa facility, located in
Yeosu, has been expanded to 150ktpa and it
plans to shut down overall from May 23 to June 3;
★ Japan Mitsui’s 120ktpa facility, located in
Kashima, has been under shutdown from March
11 and its annual maintenance schedule will start
from May 17 to June 23. In addition, its another
120ktpa facility in Omuta has been conducted
maintenance from May 13 and this maintenance
will last to June 13.
2.1.3 Import & Export Data
Table 2: China TDI Export/Import Flow from
January to April 2011 (Tons)
HS Code: 29291010 Month
Import Export
201101 9950 370
201102 6500 474
201103 6599 682
201104 7360 348
Total 30409 1874
Table 3: China TDI Export Destinations in Aril
2011 (Tons)
Export Destinations Quantities (Tons)
Albania 100
Hong Kong 79
South Africa 40
Venezuela 40
Pakistan 36
Kyrgyzstan 25
Vietnam 20
Iran 6
DPRK 2
2.1.4 Future Market Preview
In June, northern domestic TDI producers will face larger inventory pressure. Downstream factories
can make themselves under safety inventory for more than one month and thus they are not anxious to
procure now.
Additionally, under the condition of flagging demands, TDI market prices will hover at its low level or
fall off possibly in June. 2.2 Crude MDI
During this month, domestic crude MDI market price continues to drip and traders slow down their
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Chinese Polyurethane Monthly Report 201105
selling space. In early May, domestic suppliers announce their list price of contract price in succession.
Except for Bayer, other suppliers keep stable quotations.
However, traders still hold bearish sentiments towards later market and meanwhile, they have
obvious inclinations to sell at low prices, thereby, the market quotations decline to some extent.
In addition, some MDI plants move into the maintenance period in this month but with weak
downstream demand, they still have ample inventories. On the whole, the maintenance plans have little
impacts on whole market and the transaction price slips down gradually.
Table 4: Monthly Crude MDI RMB and USD Prices Comparison
Types Unit May Average Price April Average Price Fluctuation Remarks
China RMB/ton 16600-17400 17250-17800 -650, -400 Drum/Ex-factory
Imports USD/ton 2100-2200 2150-2250 -50, -50 Drum/CIF
Note: RMB Cost =USD CIF price*(1+17%)*(1+6.5%)*(1+Anti-dumping Rate) * Exchange Rate +Import Port Charge (Only
available for calculating the costs of China crude MDI imports. 17%: VAT rate, 6.5%: import duty rate.
Graph 2: Crude MDI Weekly Price Trend from 2010 to 2011
Source:PUdaily.com500
1100
1700
2300
2900
3500
4100
4700
8-Jan-10
26-Feb-10
16-Apr-10
4-Jun-10
23-Jul-10
10-Sep-10
29-Oct-10
17-Dec-10
4-Feb-11
25-Mar-11
13-May-11
DateU
SD
/MT
2000
6000
10000
14000
18000
22000
26000
RM
B/M
T
USDRMB
Note: ① RMB refers to E-China, Drum/Ex-Factory;
②USD refers to Drum/CIF China.
2.2.1 Upstream Feedstocks-Aniline Benzene Market: This month, domestic benzene market shows the slowly declining tendency.
Along with the fall back of crude oil price, benzene market lacks of the rising momentum. Since the
middle of this month, Sinopec has regulated down its benzene list price of various regions in
succession but the overall market demands remain poor. On the whole, the market transactions
present to be deserted.
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Aniline Market: This month, domestic aniline market glides down steadily but in early May, the
market quotations keep stable due to the support of benzene price. Since the middle of the month,
some aniline suppliers reduce their quotations follow the declining benzene price from Sinopec.
However, as most aniline plants keep low operation rates or conduct the maintenance, the overall
market supplies decrease so that the aniline price gets the support.
2.2.2 Asian MDI Facilities Movement
★NPU’s 130ktpa MDI facility has been shut down
for one-month maintenance due to the glitches
since March 30 and expects to restart in early
June.
★NPU’s 70ktpa MDI facility was also shut down
for one-month maintenance on May 5. Besides,
its 20ktpa MDI facility is running normally.
★Yantai Wanhua Polyurethane Company's three
production lines all run steadily and meanwhile,
its 200ktpa MDI facility located in Yantai has
resumed the production since May 30.
★Mitsui Chemical's 60ktpa MDI facility located in
Omuta has been conducted one-month
maintenance from May 11 and expects to restart
on June 13.
★KUMHO Mitsui Chemical’s MDI facility was
shut down for the maintenance on May 20 and
this maintenance will last for 3-4 weeks.
★Huntsman's 160ktpa MDI splitter has been
conducted half-month maintenance since May 23.
Currently, it has normal inventories and the sales
prove to be smooth.
★BASF Shanghai's 160ktpa MDI facility was shut
down for maintenance on May 23 and it will last to
June 12.
2.2.3 Im/Export Data
Table 5: China Crude MDI Export/Import Flow
from January to April 2011 (Tons)
HS Code: 39093010 Month
Import Export
201101 28136 17279
201102 21010 11562
201103 39313 27309
201104 29492 19408
Total 117950 75558
Table 6: China Crude MDI Export Destinations in
Aril 2011 (Tons)
Export Destinations Quantities (Tons)
America 3375
Taiwan 2780
Belgium 2100
South Korea 1957
Indonesia 830
Japan 762
Thailand 713
Brazil 680
Turkey 680
India 639
2.2.4 Future Market Preview In June, most MDI manufacturers will resume production and at that moment, oversupply
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Chinese Polyurethane Monthly Report 201105
phenomenon will come out again and it is most likely for crude MDI market to go down and some
low-priced stocks may drop to RMB 16000/ton.
2.3 Pure MDI Market
Since the first part of April, domestic pure MDI market began to glide down and the price dropped
from RMB22000 to RMB22000/ton, down RMB2000/ton in total.
As for downstream clients, they have low rigid demands while meanwhile, they all hold the mentality
of “buying when prices going up instead of coming down” and thus the transaction atmosphere continues
to weaken. The overall pure MDI market falls into the stalemate.
In addition, downstream industries will have been in the slack season from June to August and thus
the demands tend to be weak gradually. Currently, domestic spandex plants are faced with the loss and
thus most of them begin to reduce the production or even shut down. Meanwhile, PU resin industry steps
into the slack season and thus the plants are inactive in purchasing.
Table 7: Monthly Pure MDI RMB and USD Prices Comparison
Types Unit May Average Price April Average Price Fluctuation Remarks
China RMB/ton 20700-21100 21700-22100 -1000, -1000 Drum/Ex-factory
Imports USD/ton 2700-2750 2650-2700 50, 50 Drum/CIF
Note: RMB Cost =USD CIF price*(1+17%)*(1+6.5%)*(1+Anti-dumping Rate) * Exchange Rate +Import Port
Charge (Only available for calculating the costs of China pure MDI imports. 17%: VAT rate, 6.5%: import duty rate.
Graph 3: Pure MDI Weekly Price Trend from 2010 to 2011 (E-China)
Source: PUdaily.com1000
1400
1800
2200
2600
3000
3400
8-Jan-10
19-Feb-10
2-Apr-10
14-May-10
25-Jun-10
6-Aug-10
17-Sep-10
29-Oct-10
10-Dec-10
21-Jan-11
4-Mar-11
15-Apr-11
27-May-11
Date
US
D/M
T
13000
16000
19000
22000
25000
RM
B/M
T
USDRMB
Note: ① RMB refers to E-China, Drum/Ex-Factory;
②USD refers to Drum/CIF China.
2.3.1 Upstream Feedstocks-Aniline Benzene Market: This month, domestic benzene market shows the slowly declining tendency.
Along with the fall back of crude oil price, benzene market lacks of the rising momentum. Since the
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Chinese Polyurethane Monthly Report 201105
middle of this month, Sinopec has regulated down its benzene list price of various regions in
succession but the overall market demands remain poor. On the whole, the market transactions
present to be deserted.
Aniline Market: This month, domestic aniline market glides down steadily but in early May, the
market quotations keep stable due to the support of benzene price. Since the middle of the month,
some aniline suppliers reduce their quotations follow the declining benzene price from Sinopec.
However, as most aniline plants keep low operation rates or conduct the maintenance, the overall
market supplies decrease so that the aniline price gets the support.
2.3.2 Asian MDI Facilities Movement
★NPU’s 130ktpa MDI facility has been shut down
for one-month maintenance due to the glitches
since March 30 and expects to restart in early
June.
★NPU’s 70ktpa MDI facility was also shut down
for one-month maintenance on May 5. Besides,
its 20ktpa MDI facility is running normally.
★Yantai Wanhua Polyurethane Company's three
production lines all run steadily and meanwhile,
its 200ktpa MDI facility located in Yantai has
resumed the production since May 30.
★Mitsui Chemical's 60ktpa MDI facility located in
Omuta has been conducted one-month
maintenance from May 11 and expects to restart
on June 13.
★KUMHO Mitsui Chemical’s MDI facility was
shut down for the maintenance on May 20 and
this maintenance will last for 3-4 weeks.
★Huntsman's 160ktpa MDI splitter has been
conducted half-month maintenance since May 23.
Currently, it has normal inventories and the sales
prove to be smooth.
★BASF Shanghai's 160ktpa MDI facility was shut
down for maintenance on May 23 and it will last to
June 12.
2.3.3 Import & Export Data
Table 8: China Pure MDI Export/Import Flow from
January to April 2011 (Tons)
HS Code: 29291030 Month
Import Export
201101 13687 3591
201102 8487 3623
201103 15984 5740
201104 10350 5144
Total 48509 18098
Table 9: China Pure MDI Export Destinations in
Aril 2011 (Tons)
Export Destinations Quantities (Tons)
Taiwan 1187
Hong Kong 641
Singapore 515
Syria 461
Turkey 395
America 333
India 310
Brazil 280
Netherlands 253
Russia 155
2.3.4 Future Market Preview
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Generally speaking, downstream industries will come into its off-season from June to August with
weakening demands. As a result, MDI consumptions in the future will be limited with no great support for
MDI prices.
It is predicted that pure MDI market in China will go down slightly. For one hand, downstream
demands are poor and slim. On the other hand, pure MDI traders have to dispose at low prices
pressurized by short capitals.
2.4 Propylene Oxide Market Early this month, propylene oxide supply and demand unbalance still exists and the supply
tightness in the east proves to be fiercer in the north. Partial buyers purchase Shandong stocks and
prices for small orders go up gradually. Later, downstream users fail to accept the prices hike, especially
that for stocks from Ningbo ZRCC Lyondell Chemical. In the second half of this month, propylene oxide
imports arrive in ports gradually and partial northern PO and PPG plants will enter into the maintenance
successively in early June. For the moment, propylene oxide supply tightness has been remitted to
some extent and the actual transaction patterns in the third week begin to loosen to different clients.
Table 10: Monthly PO RMB and USD Prices Comparison
Types Unit May Average Price April Average Price Fluctuation Remarks
China RMB/ton 16563-16888 15838-16088 725, 800 Drum/Delivery
Imports USD/ton 2100-2150 2063-2138 37, 12 Drum/CIF
Notes: RMB Cost=USD CIF price *(1+17%)*(1+5.5%) *Exchange Rate+ Import Port Charge
(Only available for calculating the costs of China PO imports. 17%: VAT rate; 5.5%: Import duty rate but
Singapore with zero duty).
Graph 4: Propylene Oxide Weekly Price Trend from 2010 to 2011
Source:PUdaily.com
500
800
1100
1400
1700
2000
2300
2600
08-Jan-10
26-Feb-10
16-Apr-10
04-Jun-10
23-Jul-10
10-Sep-10
29-Oct-10
17-Dec-10
04-Feb-11
25-Mar-11
13-May-11
Date
USD/M
T
6000
9000
12000
15000
18000
21000
24000
RM
B/M
T
USD
RMB
Note: ①RMB refers to E-China, Drum/Delivery;
②USD refers to Drum/CIF China
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2.4.1 Upstream Feedstocks-PropylenePropylene Market: In early May, domestic propylene market seems to be high in the transaction
atmosphere but restrained by the contradiction of supply and demand, the decline is still the main tone
after the short-term increase. Meanwhile, downstream products of propylene are all in the downtendenct
Liquid Chlorine Market: Domestic liquid chlorine market this month performs to be unfavorable while
provoked by the soaring liquid caustic soda market; domestic producers mainly operate with high loads
(chlor-alkali facility co-produces liquid chlorine and liquid caustic soda). However, the overall
downstream demands are limited and thus prices from suppliers drop rapidly. Besides, coupled with the
gradually traditional off season of liquid chlorine as well as the newly-increased items, prices for liquid
chlorine have difficulties in stabilizing.
2.4.2 Propylene Oxide Facility Latest Movement:
◆Fangda Jinhua Chemical’s polyether polyols
facility shut down on May 9 for 4-5 days and
during this maintenance period, propylene oxide
commodities sold outside increased to 240-250
tons from 100-120 tons. On May 13, polyether
polyols facility reopened with commodities
outside of 180 tons. Meanwhile, its 40ktpa
propylene oxide facility shut down for
maintenance on May 24 and restarted on May 27.
The annual maintenance of all its devices will be
conducted from June 10-15.
◆Shenyang G-Billow Chemical’s PO/PPG facility
shut down on April 30 and restarted on May 2
with propylene oxide daily output of 120 tons and
later, its propylene oxide output will be sold
outside completely. Its flexible polyols daily output
keeps 30-40 tons and its polyether polyols device
will shut down on May 23 with restart time unclear.
Additionally, its 40ktpa polyether polyols facility
will be modified in technology;
◆Shandong Bluestar Dongda Chemical Co.,Ltd’s
propylene oxide facility restarted on April 30 and
now it operates with loads of 90%;
◆Tianjin Dagu’s polyether polyols facility will shut
down for maintenance from May 26 to June 8 and
its propylene oxide device now operates with
loads of 50% and the operation rates will
decrease to 30% at the end of this month;
◆Shandong Shida Shenghua Chemical will shut
down its propylene oxide facility from May 21-28
and now its daily output keeps 140 tons with
commodities outside of 40 tons;
◆ Shandong Dongchen Chemical’s propylene
oxide device reopened on May 18 and now it
operates 80% with daily output of 130 tons;
◆Shandong Binhua Chemical broke off on May 4
due to the power outage for about 40 hours and
the maintenance plan of its propylene oxide
device has been delayed to June21/22 for abut
half a month;
◆Ningbo ZRCC Lyondell Chemical’s propylene
oxide facility runs 100% with daily output of 800
tons;
◆ Nanjing KUMHO GPRO Chemical Group’s
propylene oxide device runs with full loads and
they mainly serve for their regular clients.
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2.4.3 Import & Export Data Table 11: China PO Import/Export Flow from January to April 2011 (Tons)
HS Code: 29102000 Month
Import Export
201101 26164 0
201102 20251 0
201103 37072 0.012
201104 22628 0.006
Total 106115 0.018
2.4.4 Future Market Preview
The PO facility in Saudi Arabia will be expected to restart on July 3 and Singapore Shell will also
ramp up the operation rates along with its cracker facility resumption. In order to evade the risks caused
by the influx of oversea materials, domestic sellers may reduce prices in advance to release the risks.
In June, prices will begin to fall off but when prices come to some certain level, domestic suppliers
may restrict production to protect prices.
. 2.5 Polyether Polyols
Flexible Polyols Restrained by the high costs pressures, propylene oxide prices are much higher than that of flexible
polyols and thus polyether polyols profits prove to be very thin and even at a loss. This month, polyether
polyols producers mainly cut down their flexible polyols outputs and turn to produce stocks with high
added value.
However, because of the profits erosion caused by high-priced propylene oxide, polyether polyols
providers have to curtail their outputs of the high value-added materials. In late May, some northern
polyether polyols producers conduct the maintenance in succession and in early June, partial producers
will enter into the maintenance period successively to remit the inventory pressures.
Flexible Polyols (HR) Owing to the thin profits of flexible polyols, suppliers now mainly produce flexible polyols (HR) and
POP stocks with high profits. Meanwhile, along with the increasing base polyether polyols, the
mainstream transaction prices for flexible polyols (HR) (330N) drums ascend slowly as well.
Besides, it is said that the price hike from terminal downstream sectors proves to be small and their
profits have been eroded completely by upstream fields. Therefore, they dare not to receive the orders
and thus their procurements for raw materials are very feeble.
Rigid Polyols This month, prices for medium stocks in the north are mainly at RMB15000-15200/ton while in the
east, high-end materials are dealt at RMB15100-15600/ton and medium and low-ends at
RMB14200-14800/ton. Suffering the high costs of propylene oxide, polyether polyols providers now
mainly run at low levels and meanwhile, demands from terminal market are still poor and downstream
users have no inclinations to purchase due to the high costs pressures.
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Chinese Polyurethane Monthly Report 201105
Polymeric Polyols Along with the ascending base polyether polyols, POP (slabstock) drums in the south are mainly
sold at RMB18000-18600/ton and later, the mainstream transaction prices descend to
RMB18000-18200/ton and partial materials are dealt at low prices of RMB17500-17700/ton.
For the moment, oversupply is the main tone of the polymeric polyols market and the differences in
prices between high-end and low-end materials remain at RMB1000/ton with fierce competitions.
Considering POP (HR) drums in the south, the mainstream transaction prices ascend to
RMB18500-18800/ton from RMB18300-18800/ton and partial medium and low-end stocks are dealt at
lower prices. Elastomer Polyols
In the south, elastomer polyols mainstream transaction prices ascend to RMB17400-17800/t from
RMB17300-17600/ton while in the north, quotations in the locality increase to RMB17400-17600/t from
RMB17300-17400/ton.
For the moment, both suppliers and traders possess certain inventories and the subsequent
mainstream transaction prices will move to RMB17000-17400/ton. Northern bulks are mainly traded at
lower prices of RMB16400-16500/ton.
Table 12: Monthly Polyols RMB and USD Prices Comparison
Products Types Unit May Average
Price
April Average
Price Fluctuation Remarks
China RMB/ton 16775-17025 16450-16575 325, 450 Bulk/Delivery
Import USD/ton 2500-2550 2488-2538 12, 12 Drum/CIF Flexible Slabstock
Polyols Export USD/ton 2558-2608 2538-2588 20, 20 Drum/FOB
China RMB/ton 17750-18200 17525-17925 225, 275 Drum/Delivery Flexible Polyols
(HR) Export USD/ton 2600-2650 2550-2600 50, 50 Drum/FOB
China RMB/ton 18050-18600 17825-18350 225, 250 Drum/Delivery
Import USD/ton 2650-2700 2650-2700 n/c, n/c Drum/CIF POP (slabstock)
Export USD/ton 2658-2708 2650-2700 8, 8 Drum/FOB
POP (HR) China RMB/ton 18475-18950 18300-18600 175, 350 Drum/Delivery
China RMB/ton 17525-17775 17125-17475 400, 300 Drum/Delivery Elastomer Polyols
Export USD/ton 2600-2650 2550-2600 50, 50 Drum/FOB
Rigid Polyols China RMB/ton 14400-15550 14400-15200 n/c, 350 Drum/Delivery
Note: China : Flexible Slabstock Polyols brands: 5623① 、5613、560S、3031K、5616, etc;
Flexible Polyols (HR) brands: 330N② 、820、703、3603, etc;
Rigid Polyols brands: Conventional rigid polyols 4110; ③
POP (④ slabstock) brands: 2045、2042;
⑤ POP (HR) brands: 3628、3630, etc.
⑥ Elastomer Polyols brands: 220, 210, etc.
Imports: Flexible Slabstock Polyols brands include: 5613① 、2025A、5616, etc.
POP(② slabstock) refers to 42-45% solid content polymeric polyols.
Exports: Flexible Slabstock Polyols includes the MW 3000;①
② POP (common-grade) refers to 42-45% solid content polymeric polyols;
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Chinese Polyurethane Monthly Report 201105
HR Polyols: MW 4800③ -5000, such as 330N;
Elastomer Polyols: MW 1000 and MW 2000, such as 210/220.④
RMB Cost=USD CIF price *(1+17%)*(1+6.5%)*Exchange Rate+ Import Port Charge
(Only available for calculating the costs of China polyether polyols imports. 17%: VAT Rate; 6.5%: Import Duty
Rate but Singapore with zero duty.)
n/c refers to “No Change”.
Graph 5: Polyether Polyols Weekly Price Trend from 2010 to 2011
Source:PUdaily.com500
1100
1700
2300
2900
3500
4100
4700
8-Jan-10
26-Feb-10
16-Apr-10
4-Jun-10
23-Jul-10
10-Sep-10
29-Oct-10
17-Dec-10
4-Feb-11
25-Mar-11
13-May-11
Date
US
D/M
T
2000
6000
10000
14000
18000
22000
26000
RM
B/M
T
USDRMB
Note: ①RMB refers to E-China, Bulk /Delivery;
②USD refers to Drum/CIF China
2.5.1 Upstream Feedstocks
After undergoing the long-term increase of acrylonitrile in the early May, downstream users finally
fail to bear the high costs pressures and thus most of them begin to cut down operation rates or close
their facility in succession. Consequently, acrylonitrile suppliers have to regulate down their quotations
and the market rushes into the downslide. Approaching to late May, the market rebounds slightly.
Styrene Market: In May, following stock market and the main tendency of domestic goods, styrene
market plummets in a straight line and major downstream plants operate at low levels with shrinking
profits. As for downstream sectors, restrained by the electricity rationing policy and the rise of deposit
reserve ratio, major styrene downstream industries’ profits curtail and their operation rates remain at low
levels. Meanwhile, their capitals are short.
2.5.2 Asian Polyether Polyols Facility Latest Movement
◆Fangda Jinhua Chemical’s polyether polyols
facility shut down on May 9 for 4-5 days with
daily output of 100 tons and it restarted on May
13 with day output of 120-130 tons. Meanwhile,
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Chinese Polyurethane Monthly Report 201105
all of their devices will be conducted
maintenance from June 10 to June 15;
◆ Shenyang G-Billow Chemical’s PO/PPG
facility shut down on April 30 and restarted on
May 2. Later, its polyether polyols facility closed
on May 23 with restart time unclear. Meanwhile,
its 40ktpa polyether polyols device is in the
improvement in technology;
◆Shandong Dongda’s polyether polyols facility
restarted on April 30 and their operation rates
decreased to 50% from 70-80%;
◆Tianjin Dagu’s polyether polyols facility now
runs with loads of 50% and it will be shut down
for maintenance from May 26 to June 8;
◆ Zibo Dexin Lianbang’s polyether polyols
device shut down in middle May for a short time.
2.5.3 Import & Export
Table 13: China Polyols Export/Import Flow from
January to April 2011 (Tons)
HS Code: 39072090 Month
Import Export
201101 36482 14373
201102 18855 12018
201103 38736 22214
201104 31347 25492
201101-04 125420 74096
Table 14: China Pure MDI Export Destinations in
Aril 2011 (Tons)
Destinations Quantities
India 3715
Hong Kong 2473
Taiwan 2386
Malaysia 2171
Pakistan 1838
Indonesia 1504
Singapore 1248
Japan 1049
South Korea 1008
Turkey 824
2.5.4 Future Market Preview Although polyols factories cut operation rates down, inventories are still on its high level. Along with
PO prices to plunge substantially, polyols competitions will be much horrifying, particularly for those who
have no internal PO facility.
After several weeks’ disposing activity in South China in advance, the sales pressure is gradually
transferred to the eastern and northern markets. In June, polyols market seems hard to touch the bottom.
2.6 PTMEG Market
During this month, domestic PTEMG market quotations stay smooth but the overall transaction
volumes decline to a large extent. In May, the upstream BDO market and THF market is filled with
bearish sentiments and the low prices are ceaselessly being heard and the later cost pressures of
PTMEG suppliers will be alleviated to some extent.
Along with the restart of Mitsubishi Ningbo’s PTEMG facility, the supplies of 2000mol/g materials
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Chinese Polyurethane Monthly Report 201105
tend to increase, which will lead the price of 2000mol/g materials to decrease. As for the imports, the
supplies of PTG, Mitsubishi and Invista stocks keep at low levels but under the condition of insufficient
downstream demands, the transactions at high prices are still difficult.
Considering downstream clients, the demands from spandex and elastomer industries prove to be
passable but PU resin industry operates at low levels. On the whole, the transaction volumes in this
month decline obviously.
Table 15: Monthly PTMEG RMB and USD Prices Comparison
Products Types Unit May Average
Price
April Average
Price Fluctuation Remarks
China RMB/ton 30200-30600 30200-30600 n/c, n/c Drum/Ex-factoryPTMEG (1800)
Imports USD/ton 3800-3850 3800-3850 n/c, n/c Drum/CIF
China RMB/ton 33500-35200 33500-35200 n/c, n/c Drum/Ex-factoryPTMEG (2000)
Imports USD/ton 4250-4450 4250-4450 n/c, n/c Drum/CIF
China RMB/ton 35000-37500 35000-37500 n/c, n/c Drum/Ex-factoryPTMEG (1000)
Imports USD/ton 4450-4600 4450-4600 n/c, n/c Drum/CIF
Notes: RMB Cost=USD CIF price *(1+17%)*(1+3%) *Exchange Rate+ Import Port Charge
(Only available for calculating the costs of China PTMEG imports. 17%: VAT rate; 3%: Import duty rate )
n/c refers to “No Change”.
Graph 6: PTMEG Weekly Price Trend from 2010 to 2011
Source: PUdaily.com1500
2000
2500
3000
3500
4000
4500
5000
8-Jan-10
19-Feb-10
2-Apr-10
14-May-10
25-Jun-10
6-Aug-10
17-Sep-10
29-Oct-10
10-Dec-10
21-Jan-11
4-Mar-11
15-Apr-11
27-May-11
Date
US
D/M
T
20000
23000
26000
29000
32000
35000
38000
41000
RM
B/M
T
USDRMB
Note: ①RMB refers to E-China, 2000 mol/g Drum/Ex-factory;
②USD refers to Drum/CIF China
2.6.1 Upstream Feedstocks-BDO&THF
Shanghai Suntower Business Consulting Page 14
This month, domestic market demands shrink to some extent and the market price is forced to be
regulated down. Along with the restart of Shanxi Sanwei Group’s maleic anhydride facility and coupled
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Chinese Polyurethane Monthly Report 201105
with declining contract volumes, the market supplies tend to enlarge gradually. Therefore, domestic
BDO suppliers are forced to revise down their quotations.
Meanwhile, bearish atmosphere still pervades the trading market and downstream users are still
reluctant to purchase, which greatly strikes traders’ mentalities and thus the transaction prices slip down
step by step. Considering downstream sectors, the overall industries reduce the operation rates,
especially for PU resin industry.
In May, domestic THF market transactions keep the unsmooth state and the transaction prices
decline gradually.
As for domestic suppliers, Nanjing Bluestar New Chemical Materials Company revises down its
quotations from RMB34000/ton to RMB 32000/ton; Sinopec Taicang Chemical Industry Park declines
its quotations from RMB32000/ton to RMB 31000 /ton. Besides, traders are faced with selling difficulties
and the transaction prices continue to fall. Among which, the quotations of home-made materials
descend by RMB1000/ton while the prices of Nan Ya stocks decline by RMB500/ton.
2.6.2 Asian PTMEG Facilities Movement
◆Sinochem Taicang Chemical Industry Park’s
PTMEG facility runs normally with 70% operation
rates and according to the insiders, the order
volumes from downstream users tend to shrink.
However, due to the cost pressure and slender
profits, the company shows no inclinations of
declining its quotations.
◆Hangzhou Qingyun Holding Group’s PTMEG
facility operates regularly at 60-70% with smooth
quotations.
◆ Japan Mitsubishi’s PTMEG facility operates
steadily.
◆ Mitsubishi Ningbo’s PTMEG facility has
resumed the production and now due to the
limited inventories it offers no quotations.
2.6.3 Import & Export Data
Table 16: China PTMEG Export/Import Flow from January to April 2011 (Tons)
HS Code: 39072010 Month
Import Export
201101 9978 763
201102 5643 887
201103 11323 994
201104 9724 1063
201101-04 45097 4274
2.6.4 Future Market Preview
Shanghai Suntower Business Consulting Page 15
Under the background of low inventory, domestic traders refuse to reduce prices to promote the
sales of imported materials. In addition, the USD prices for some brands are on the rise in June and thus
imported PTMEG stocks are hopeful to be kept at high levels although transaction volumes may further
to shrink.
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Chinese Polyurethane Monthly Report 201105
For home-made stocks, its upstream feedstocks of BDO and THF are on the downward, which is
negative for PTMEG market but domestic PTMEG manufacturers show little desire to cut prices down
due to slim profits. What’s worse, downstream demands turn to weakness and it is predicted that
PTMEG prices in China will fluctuate moderately in the short run.
3. Downstream Industries
Upholstered Furniture According to the feedbacks from downstream factories, it is a
bit earlier for PU foam industry to come into its slack season in
March this year. Consequently, sponge factories have to cut
operation rates to 40%-50% and demands for PU feedstocks are
shrinking accordingly.
Sponge producers complaint that they are facing large costs
pressure due to escalated PU materials; what’s worse, furniture
orders this year are decreasing.
Refrigerators It is reported that in the first four months this year, China
refrigerators have been sold 22.69 million units, including 2.104
million units in domestic market, up 13.5% and 16% compared with
the same period of last year. However, the sales growth rate has
plunged dramatically.
Automobile Sources from National Bureau of Statistics of China, auto sales in
May reach to 1,430,000 units, down 1.9% year-on-year (YOY),
including 760,000 cars, up 3.3% YOY.
In the first five months, auto sales amount to 8,060,000 units,
increase by 5.2% YOY, including 4,230,000 units, up 7% YOY.
It is indicated that auto sales have slowed down obviously and
come into the negative growing times.
Elastomer It is the traditional rainy season in May and June in the south
and by convention, elastomer will come into the peak season from
July.
In August, plastic track industry will welcome its peak season
and some downstream PU Skateboard wheels can keep favorable profits.
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Chinese Polyurethane Monthly Report 201105
PU Resin In May, shoe soles and PU resin industries can only keep
50%-60% operation rates and some small sized factories even
cut operation rates to 20%-40%.
In addition, some medium and small sized shoe-making and
clothing enterprises get into scrapes.
Spandex In May, the overall operation rates have no obvious decrease
and spandex sales remain in the doldrums and inventories are
increasing step by step. Domestic factories have held several
meetings to discuss the production reduction plans this month.
Presently, downstream weaving, textile and garment
factories are prudent to receive orders, which lead to the
continuously fragile demands for spandex. Additionally, electricity
ration in Zhejiang is serious and thus spandex operation rates in
the future are worrying.
4. Big Events in May in Detail 4.1 Company Dynamics in May
Systems House Broke Ground in Tianjin BASF SE broke ground April 20 on its new polyurethane systems house in Tianjin.
The facility will offer customized polyurethane solutions to its customers, supported by local
production, in-house sales, technical service and development teams.The plant is expected to start up in
2012 and will join BASF’s worldwide network, which currently includes 38 system houses.
“The Northern China region is witnessing a thriving PU market with above-average growth rates and
considerable increases in production and demand in the years to come,” said Melanie Maas-Brunner,
senior vice president of polyurethanes in Asia Pacific, in a news release.
She highlighted BASF’s capacity to
provide service rapidly growing sectors such
as construction and automotive, as well as
emerging markets for renewable energy such
as wind and solar energy.
China is already the largest polyurethane
market in the world and is forecast to
maintain strong growth in the coming decade,
noted BASF. The company already has two
systems houses and regional development
centers in Shanghai and Nansha.
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Chinese Polyurethane Monthly Report 201105
ASF Warns on Overexpansion in Asia There is a danger that overinvestment in
petro
amounts of capacity additions, coupled with
mor
head of BASF's petrochemicals business in A
al industry globally are making companies undertake
majo
B
chemical expansions in Asia will lead to overcapacity,
margin erosion and the next big down cycle by 2015, a
senior executive with German chemical major BASF said
on Friday.
Large
e moderate economic growth in China and the
Asia-Pacific region, will create the perfect conditions for a
major down cycle in chemicals, said Torsten Penkuhn, the
sia.
The current favorable conditions for the chemic
r expansion decisions without considering the possibility that those decisions will contribute to a
down cycle, he said. More
ASF to Build World's Largest Single-Train TDI Plant in Europe
TDI (toluene diisocyanate)
plan
B
Ludwigshafen, Germany– BASF will build the world's largest single-train
t in Europe. The plant will have a capacity of 300,000 metric tons per year and will be fully integrated
with precursor production. The TDI plant will be located at one of the company's integrated Verbund sites
in Antwerp, Belgium or Ludwigshafen, Germany and will start production in 2014. Engineering is
underway and the final site selection will be announced shortly. TDI is a key component used for
polyurethane foams. More
ayer MaterialScience to Invest $120M in Texas Plant American
hea
makes Methylene diphenyl diisocynate (MDI) and Toluene
diiso
BBayer MaterialScience LLC, which has its North
dquarters in Robinson, is investing roughly $120 million in its Texas
chemical manufacturing site. The work is happening at the Baytown,
Texas, site which is a major facility in the company's global manufacturing
strategy.
The plant
cyanate (TDI), which are chemicals used in polyurethanes in foam for
furniture and automotive uses, coatings, adhesives and sealants. It also
makes polycarbonate, which is used in automotive lights, data storage,
medical devices and shatter-proof lenses. The upgrades are expected to
improve processes, reliability and environmental performance. More
ayer is to Expand Its MDI and HDI Capacity in Shanghai
uction
site
BOn the groundbreaking ceremony of polyurethane system prod
in Qingdao on May 24, vice president Dr.AzitaOwlia of Bayer
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Chinese Polyurethane Monthly Report 201105
Materialscience Polyurethane Division said that Bayer would
expand its 350 kt/y MDI facility to 1000 kt/y in Shanghai
Chemical Industry Park, and the HDI capacity would also be
expanded to 80 kt/y.
Dr. Ou added that except from the current 350 kt/y was
going to be expanded to 500 kt/y, there would be another 500
kt/y facility to build there, and the 80 kt/y HDI facility included
the newly added 50 kt/y. Polycarbonate business' HQ will also
be moved to Shanghai and its capacity will be expanded to 500
kt/y. More
Chery Auto, Bayer Partner up on Lightweight Materials for Vehicles China's automaker Chery Auto and Bayer Group have
jointly set up a lab to research and develop lightweight
materials for automobiles, Chery announced Friday.
"The establishment of the lab with Bayer MaterialScience
is an important step for Chery Auto on the research and
development of automobile material technologies," said Jin
Yibo, a spokesman with Chery Auto.
"Chery Auto aims to promote automobile lightweight
technologies and develop energy-saving and environmentally friendly lightweight automobiles with the
help of Bayer technologies," Jin added. More
Cangzhou Dahua Optimizes TDI Energy Utilization PUdaily, Shanghai-Since late last year, Cangzhou Dahua Group Co.,Ltd has been in the process of
technical transformation and about 4 projects have been optimized.
As a result, about 5,544 tons steam can be recovered averagely
every year with 1,650 tons coke being saved. Meanwhile, about 5
million Yuan costs can be saved as well.
Before using jacket with withstand voltage, Cangzhou Dahua's
steam in great quantities has to be released outward and this has not
only caused abundant energy losses but also brought thermal
pollution to air. More
Dow Chemical Expects Lawsuit Decision in Case Versus Kuwait Petrochemical The Dow Chemical Co. expects a resolution this year in its
complaint against Kuwait's Petrochemical Industries Co. for backing
out of a proposed $17.4 billion joint venture in December 2008.
Dow is seeking more than $2 billion in damages after PIC
unexpectedly pulled out of the K-Dow Petrochemicals joint venture
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Chinese Polyurethane Monthly Report 201105
days before it was supposed to being operations. Dow was set to receive $7.5 billion cash in the deal
from PIC and another one-time $1.5 billion payout from K-Dow once the company was formed. The deal
fell through shortly before Dow purchased Rohm and Haas Co., and the $9 billion was to go toward that
purchase.
Dow Chairman and CEO Andrew Liveris said Thursday that both sides have finished submitting
evidence and a decision is expected by the end of the year. More
DuPont Packaging & Industrial Polymers to Increase Capacity at Dordrecht, Netherland DuPont Packaging & Industrial Polymers today announced
that it will increase capacity at its site at Dordrecht, Netherlands,
to meet strong demand for specialty copolymers, DuPont Bynel
adhesive resins, DuPont Fusabond modifier resins and DuPont
Appeel lidding sealants used in packaging, construction and
industrial markets. The expansion enhances the company's
global network of manufacturing capabilities which includes sites
Pacific.
in the North America, Europe and Asia
More
Elevance R enewable Sciences a nd Royal DSM t o Collaborate f or Bio-based Specialty Thermoplastic Materials Elevance Renewable Sciences, Inc. and Royal
DSM N.V. announce they have signed a Letter of Intent
for a collaboration to evaluate Elevance's unique
monomers for production of specialty bio-based high
performance thermoplastic materials, for DSM ’ s
engineering plastics portfolio.
Elevance will provide natural monomers produced
from plant oils along with its proprietary metathesis technology to enable the production of various
polymers. DSM will provide expertise on polymer research, application development and
commercialization.
"Partnering with Elevance enables DSM to further broaden our portfolio of products that provide
improved performance over existing polymer solutions," said Roelof Westerbeek, president of DSM
Engineering Plastics. More
Fujian Putian 10,000 tons/year Water-Soluble Polyurethane Project Goes Into Production PUdaily, Shanghai-China-Huayu (Fujian) Technology Development Co., Ltd's 10,000 tons/year
water-soluble polyurethane project is going into production and its phase II project construction of
100,000 tons/year device is about to start working and the opening ceremony has been held recently in
Chengxiang Hualin Industrial Park in Fujian Putian.
This project has been listed in national-863 development item on water-soluble polyurethane that
can be widely used in shoes. These products fill the gaps in China.
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Chinese Polyurethane Monthly Report 201105
After putting into production, the annual production value of phase I project will achieve 0.3 billion
and the phase II project is expected to realize that of 3 billion.
Huafon Microfibre (Shanghai) Co., Ltd Costs ERU 9 Million to Purchase Production Lines PUdaily, Shanghai-Today (May 24), Huafon Microfibre (Shanghai) Co., Ltd signs two purchasing
contracts with Dilo. The contract totally costs EUR 9, 000, 000 (about RMB 8, 218, 000, 000) and it
contains four production lines of special sea-island fibre acupuncture non-woven.
Among which, two production lines are used for building 6, 000, 000 square meters superfine
polyurethane leather, costing RMB 4, 109 while other two lines are made for building 1, 440 square
meters/year microfibre cloth project and the project will be financed by enterprise's own resources. More
INVISTA Opens Spandex Plant Expansion in Foshan, China
FOSHAN, China, May 5, 2011 -- INVISTA, the recognized
leader in spandex production and a wide range of other apparel
fibers, fabric treatment and fabric technologies, expanded its
spandex venture plant in Foshan.
The plant will add approximately 12.5 kilotons of spandex
production, raising total annual capacity to 24.5 kilotons in response to Asia's growing demand of
high-quality spandex products.
With a total investment of more than US$227 million, the venture between INVISTA and Foshan
Plastics Group Co., Ltd remains the largest foreign investment ever in Guangdong's fiber industry.
The plant now operates four production lines producing spandex fibers for multiple textile processing
applications. More
LANXESS Completes Acquisition of DSM Elastomers
The specialty chemicals group LANXESS has successfully completed
the acquisition of DSM Elastomers. The antitrust authorities have granted
the approvals that are necessary for completion. The transaction took
economic effect on May 1, 2011.
LANXESS is paying EUR 310 million for the elastomer business of the
Dutch company Royal DSM N.V. DSM Elastomers produces the synthetic rubber
ethylene-propylene-diene monomer (EPDM) under the brand name Keltan. LANXESS is financing the
acquisition with existing liquidity.
"The successfully completed acquisition of this elastomer business is a further milestone on our
growth path," said LANXESS CEO Axel C. Heitmann. More
Perstorp Increases Polyol Capacity With Investment in China
Perstorp invests in extended capacity for the polyalcohol Neopentyl
Glycol by establishing production at the Group’s manufacturing site in
Zibo, China, with planned production start during the second half of 2012.
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Chinese Polyurethane Monthly Report 201105
"This investment is yet another step for us to strengthen our presence in Asia and it is fully in line
with our strategies going forward. With this new capacity Perstorp will cement its position as one of the
leading producers of Neopentyl Glycol, making it possible to take part of the fast and strong growth in this
region", President and CEO Martin Lundin says.
Planned to be up and running during the second half of 2012, the new capacity will be established at
Perstorp’s manufacturing site in Zibo in China through Perstorp’s joint venture Shandong Fufeng
Perstorp Chemical Co., Ltd. More
Shanghai Dongda Chemical's Polyurethane Project Begins Construction PUdaily, Shanghai-It is reported that a foundation
stone laying ceremony of Shanghai Dongda Chemical's
50kt/year polyurethane and 50kt/year specialty polyols
project has been held and meanwhile, Chairman Xujun
took part in the ceremony.
This project is totally invested with RMB0.2 billion,
including 10kt/year PU systems, 40kt/year CASE series
products and 50kt/year specialty polyols monomer project
(MPEG and APEG series products).
These products are widely used in building energy-efficient heat preservation system, airplane, seat
cushion, refrigerator, solar energy heat preservation, high-speed rail, tunnel, concrete water reducing
agent, coating emulsifier, upscale detergent etc. More
PPG Issues 2010 Corporate Sustainability Report PITTSBURGH, May 03, 2011–PPG Industries (NYSE: PPG) has
issued a corporate sustainability report for 2010, which expands on and
enhances the scope of information provided in the company's first full
report for 2008. The document provides in-depth details regarding
PPG's status and progress on economic, environmental, safety and
social-involvement initiatives.
"In this second full sustainability report, readers will see the
measurement of our efforts over the past two years, but also specific examples of how we have elevated
our approach and challenged ourselves to grow in a sustainable way," said Charles E. Bunch, PPG
chairman and CEO.
"We have enhanced our monitoring and tracking for a range of measures for economic,
environmental and social factors, which in turn has enabled us to expand our reporting and to
communicate even more transparently about our progress." More
Polyurethane Adhesive Plant Nanjing Fuller Opens Up in China
PUdaily, Shanghai-May 18, 2011, the first reactive polyurethane adhesive plant, established by the
multinational corporation H.B. Fuller Company (NYSE: FUL), went into operation in Nanjing Chemical
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Chinese Polyurethane Monthly Report 201105
Industrial Park, China. This project has been totally invested
1,200,000 dollars and it mainly engages in polyurethane adhesive
and other reactive adhesive products with 10,000 tons annual
output.
As Chinese automobile sales have been the world's leader for
two consecutive years, domestic market demand for automobile
adhesive moves into rapid development period and China has
become the world adhesive production and consumption power
industry.
However, the sales prices of home-made adhesive are generally
lower two-thirds than the prices of multinational corporation products and meanwhile, home-made
materials mainly occupy the low end of the market and thus it is nearly blank in high-end market. More
ABIC, Asahi Kasei and Mitsubishi Form Joint Venture
and
)
and
-scale plants with capa
AN
Al-Mady, Sabic vice-chairman and CEO, said: “A key driver for the project is Saudi
Arab
ortant chemicals for the downstream diversification into acrylonitrile
buta
umitomo Chemical Sets Up Dalian Plant to Seize Auto Raw Material Market
May
lion yen (50% is
finan
SSaudi Basic Industries Corp, Asahi Kasei Chemicals Corp.
Mitsubishi Corp. have signed an agreement to form a
limited liability company, Saudi Japanese Acrylonitrile Co.
The company will build a plant to make acrylonitrile (AN
sodium cyanide (NaCN), with subsequent sales and
distribution to be carried by the partners.
The agreed plan is to establish world cities of 200,000 metric tons per year of
and 40,000 metric tons per year of NaCN at one of the Sabic affiliates’ sites in Jubail Industrial City,
Saudi Arabia.
Mohamed
ia’s National Industrial Clusters Development Program aimed at growing and diversifying the
Kingdom’s manufacturing sector.
“AN and NaCN are very imp
diene styrene (ABS), carbon fiber, acrylic fiber, acrylamide and others which serve various industries
such as automotive, construction, water treatment, oil recovery, personal care, consumer goods,
pharmaceuticals, electronics, gold mining and many others.”
SPUdaily, Shanghai-Japan Sumitomo Chemical announced on
25 to build a plant in Dalian, China to manufacture
high-functioning resin and polypropylene products(raw materials of
automobile bumper and interior decoration). This project aimed to
cater to Japanese auto manufacturers' and local producers' demands
It is reported that the total investment amount of this new plant is about 1.2 bil
in North China.
ced by Japan Sumitomo Chemical Headquarters and the other half is contributed by the
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Chinese Polyurethane Monthly Report 201105
joint-venture subsidiary of Sumitomo Chemical (Zhuhai) Company and Toyo Ink Mfg Co.). The project is
planned to be on stream in 2012 with expected annual output of 10,000 tons. More
US-based Momentive to Sell Wood Resin Business US-based specialty chemicals and materials company
Momentive Performance Materials has put its forest products resins
business and its acrylic monomers unit on the selling block, sources
in the financial community said on Wednesday.
US-based investment banks Goldman Sachs and Morgan Stanley are handling the sale of the forest
products resins business, while The PrinceRidge Group is selling the acrylic monomers unit, sources
said. More
Yantai Wanhua Conducts the MDI Expansion Plan in Ningbo Base PUdaily, Shanghai-After completing the 300ktpa MDI and
360ktpa aniline project in Ningbo base, Yantai Wanhua will own
altogether 800ktpa MDI capacities (200ktpa in Yantai, 600ktpa in
Ningbo), which ranks in the top of domestic MDI enterprises.
This expansion project of 600kpa MDI facility has relatively
short construction cycle for one and a half or two years. Among which, 100ktpa new capacity will be
finished in 2011 and other 500ktpa capacity is expected to be completed in late 2012 or early 2013.
Until 2013, the MDI project in Yantai will be put into production gradually and meanwhile, the
company's products and capacities will keep the growth. In the next three years, Wanhua will achieve the
rapid growth of MDI capacities, which will test the marketing capacity of the company. More
Yantai Wanhua Polyurethanes and Huntsman Sign PO/MTBE License Agreement THE WOODLANDS, Texas-- Huntsman Corporation (NYSE: HUN) today announced that it has
signed a license agreement with Chinese chemicals manufacturer Yantai Wanhua Polyurethanes Co.,
Ltd., for the production of Propylene Oxide (PO) and Methyl Tertiary Butyl Ether (MTBE) - a co-product of
PO. The financial terms of the arrangement were not disclosed.
Yantai Wanhua, a leading Asian polyurethanes producer, plans to leverage the license to build a
world scale PO/ MTBE plant at its facility in Yantai, Shandong province, with construction expected to
commence later this year and beneficial production due in late 2013. More
4.2 PU Markets Spotlight in May Asian Polymers Market Demand Develops Rapidly, Transnationals Expand Investments
PUdaily, Shanghai-According to related data, the emerging
economies in China, India, Latin America and Central Europe have
strong developing momentums and thus global demands for polymers
will grow rapidly. It is predicted that global polymers market will keep
annual 5% growth rate in the next five years.
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Chinese Polyurethane Monthly Report 201105
The analyst points out, along with the continuous development of economic globalization, the
emerging economies companies will develop rapidly and thus it attracts many large scale enterprises.
Especially in Asian emerging economies market, China and India perform to be swift growth and recently,
many large transnational chemical corporations enlarge their investments in Asia. More
Broad Application of Polyurethan hanghai-According to "long-term railway network
plan
hane increase greatly and this also open up
anot
e in High–speed Railway PUdaily, S
ning", discussed and passed by the State Council in 2004,
the total mileage of national railway will surpass 100,000 km by
2020, including more than 12,000 km non-fragment passenger
dedicated line will be laid with speed of 200Km/hour.
As a result, demands for high-performance materials
including polyuret
her area in polyurethane industry. More
omestic Maleic Anhydride Market Is Faced With Technique Adjustment
mar
rease is
main
DPUdaily, Shanghai-In April, domestic maleic anhydride
ket terminated the rapid downtrend of March and since
mid-April, the market tended to get warm gradually. On May
4, domestic transaction prices of maleic anhydride broke
through ten-thousand levels and reached to RMB10400/ton
and meanwhile, the high-end materials even increased to
RMB10800/ton, up 9% compared with last month.
Seen from the market transactions, the price inc
ly caused by promotion of feedstock market, the
stockpiling of sellers, the shutdown of partial providers and
However, affected by insufficient upstream supports, downstream wait-and-see sentiments and the
overquick rising trend, maleic anhydride market tends to be faced with technical adjustment pressure. If
the market can hold out the ten-thousand RMB market prices, the later maleic anhydride market is
expected to step into the booming period authentically.
the increasing downstream large orders.
More
DI Industry Steps into Boom Period, Competition Among Enterprises Be More Drastic
MDI
r 3 years, China's demand for
MDI
MPUdaily, Shanghai-Recently, the market supplies of
products decrease to some extent and thus it is
predicted that China's MDI market supply will become
strained with increasing demands and the market
quotation will turn better.
Seen from the next 2 o
will ascend by 150,000-200,000 tons every year and
meanwhile, the demand in Europe and America will
Shanghai Suntower Business Consulting Page 25
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Chinese Polyurethane Monthly Report 201105
improve as well. It is estimated that the global demand for MDI will reach 300,000 tons every year.
As a whole, steadily increasing demands, limited outputs from newly-built facilities and downtrend of
aniline price will jointly push MDI industry into the boom period. More
arket Size of China's Refrigerator Industry This Year Will Reach 50 Million units
App
ces,
und
ed high growth. State Information Center released data
show
incre
O/PPG: Whether Downstream Users Will Continue to Tolerate Price Hike Is Worth Watching
whil
and
MWang Lei, vice chairman of the China Household Electrical
liances Association, 25, held in the national grid, "Refrigerator
Industry Development Summit Forum", said the policy effects of the
weakening of the domestic refrigerator industry this year, will slow the
pace of development, but is still expected to remain throughout the year
10% of the growth rate, reaching 50 million units in the market.
In 2010, the domestic refrigerator market in home applian
er the influence of trade-in policies to achieve rapid growth, the
domestic sales volume of major cities in the refrigerator the whole of
2300 million units, an increase of 28%. The first quarter and into 2011,
domestic sales volume of major cities in the refrigerator of 435 million uni
increase slowed down very significantly.
However, three or four markets remain
ts, an increase of 8%, an
that the first quarter of this year, the domestic three, four, respectively, year on year sales growth of
the refrigerator market, 28%, 44%, higher than the industry growth levels of 20 and 35 percentage points.
Editor Lvsheng Hua said in the national grid, channel sink chain and benefit from enterprises to
ase three or four market development, structural adjustment to the three refrigerators, four speed
transmission market, enterprises to adopt a more flexible market strategy, the local needs of the market
played an important role in upgrading.
PPUdaily, Shanghai-Oil prices rush down recently
e it still seems to fail to impact propylene oxide
market badly. However, coupled with the arrivals in May,
propylene oxide this week presents to be relatively
stable after going through the sudden rises last week.
Fangda Jinhua Chemical increases its sales outside
partial downstream polyether polyols plants turn to
reduce productions while minority facilities have been s
propylene oxide facility starts to resume gradually, tight supply in May is predicted to be relieved to some
extent.
hut down. Besides, as previous shutdown of
More
olyurethane Industry in China and India Will Develop Rapidly in Next Five Years e products
have infiltrated into various fields in our lives. Along with the continuous development of science and
P
Shanghai Suntower Business Consulting Page 26
PUdaily, Shanghai-Owing to the excellent physical and chemical properties, polyurethan
Page 27
Chinese Polyurethane Monthly Report 201105
tech
n and consumption
coun
nology, the application fields of polyurethane products
tend to broaden gradually and in China, the growth rate of
polyurethane outputs exceed that of GDP all the way.
As one of the best insulation materials, rigid polyols have
been gone up by more than 15 percent per year. Currently,
China has become the largest productio
try of polyurethane products. In addition, polyurethane
industry promotes the shoe, artificial leather, textile, automobile
China.
, home appliance and other industries in
More
System Polyols for Rigid Foam to Enter Into Rapid Development Phase PUdaily, Shanghai-In recent years, system polyols for rigid
foam has been in the rapid development period. In 2000, system
y
Chin
ld chain logistic industry, building industry and solar wate
pol ols for rigid foam enterprises with capacity of 10,000 tons in
a were about 5 while in 2010, enterprises with capacity above
20,000 tons reached 13 with violent development of the whole
industry.
For the moment, the large-scale application of PU rigid foam
has been already pushed into downstream refrigerator and freezer
industry, co r heater industry. More
Yantai Spandex Predicts 2011 Spandex Market Will Stay UnfavPUdaily, Shanghai-According to Yantai Spandex, in recent
orable
years, the spandex industry takes on obvious synchronous decline
r
sprin
velopment of downstream textile
he competition between spandex enterprises.
emicals Player
an aims to become the leading player in petrochemicals
t
dep and president of National
eve y three years. Last cycle appeared in 2008 and the next year
g, the spandex market began to rise again after bottoming out.
Meanwhile, the company says the recent spandex market
remains sluggish and the peak season is not prosperous as
scheduled.
According to current situation, the spandex market in 2011 will
when the market will recover is dependent on two aspects-the de
industry and t
not have good performance and
Yantai Wanhua's main business is to develop, produce and sell spandex fiber & aramid fiber serires
of products.
9th I PF: I ran A ims to Bec ome the L eading Mideast PetrochIr
in he Mideast by 2025, said Abdolhossein Bayat, Iran's
uty minister of petroleum
Shanghai Suntower Business Consulting Page 27
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Chinese Polyurethane Monthly Report 201105
Petr
eters,
it ha
ochemical Co. (NPC; Tehran) in his opening address to the 9th International Petrochemical Forum
(IPF), currently taking place in Tehran and attended by more than 1,000 delegates. The country had
capacity for 51 million m.t./year of petrochemical products in the Iranian fiscal year ended March 20,
2011. Iran's petrochemical exports, valued at $11.5 billion, reached 18 million m.t. Domestic sales were
13 million m.t., Bayat says.
The country is gearing up to add more value to its huge oil and gas reserves--at 33 trillion cu m
s the second largest gas reserves behind Russia--and is currently working on a string of new
investment projects, inlcuding the 15th, 16th and 17th olefins complexes and several methanol and
ammonia and urea projects. The country's 5th five year plan, which runs through 2015, will require an
investment of $49 billion and double petrochemical capacity to 100 million m.t./year. This includes 30
new plants with capacity for 37 million m.t./year. Bayat said that five more special economic zones will be
created, adding to the Pars Special Economic Zone in Assaluyeh and the Mahshahr Petrochemical
Special Economic Zone at Bandar Imam. The new zones will be at Chahbahar, on the border with
Pakistan; Qeshm Island, near Bandar Abbas; Kish Island; and Lavan, both on the Persian Gulf in the
south of Iran, and North Pars, north of Assaluyeh. Chemical parks, which will house processing
industries are also being planned. More
4.3 Im&Export and Policy News in May Approximation of the E U Enterprises to A pply the
ince June 1, where the EU REACH legislation contains
a hi
orter from the China Commodity Net (ccn.mofcom.gov.cn) and
third
ementation of the “Chemicals Re
Auth
REACH Re gulations Limit the Ex port Pressure Surge It is reported that s
gh degree of attention as the 38 substances (SVHC) reaches a certain
concentration, total amount of products, applications must be notified in
accordance with the rules and procedures will not be able to enter the EU
market.
Rep
-party service companies in Sweden held the EU laws and regulations of
the EU REACH regulation seminar to understand the past stages of the
product export enterprises to apply REACH notification, registration, how can
in the shortest time done quite concerned.
European Union June 1, 2007 impl gistration, Evaluation,
orization and Restriction” (Registration, Evaluation, Authorization and Restriction of Chemicals,
referred to as REACH) regulations, require access to their markets for preventive management of all
chemicals must be registered and assessment procedures before access. More
Development of Offshore RMB Market in HK Will Promote the
t yuan-denominated stocks Wayland
only REIT on April 29 was listed in Hong Kong, marking the offshore
renminbi business in Hong Kong has taken a historic step.
Four Basic Principles According to Xinhua, the firs
Shanghai Suntower Business Consulting Page 28
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Chinese Polyurethane Monthly Report 201105
Hong Kong SAR Government Financial Services and the Treasury spokesman said in an interview
recently, the Hong Kong Special Administrative Region Government will follow the development of
offshore yuan market, promote the four basic principles: More
India Publishes Anti-Dumping Investigation on PVC From China PUdaily, Shanghai-On April 21, 2011, Indian Ministry of Commerce &
Viny
y country and it adopts the production
price
dian Authority confirms that the PVC products from
Chin
Saudi Petrochemical, Plastics Exports to Chin Touch a 15 Month High The value of Saudi Arabia's non-oil exports to
ake plastic products,
reac
o
Saudi Arabia's non-oil exports by value increased by
Industry released the anti-dumping investigation on imports of PVC (Poly
l Chloride Paste Resin) from China, Japan, South Korea, Malaysia,
Russia, Taiwan and Thailand.
Under this investigation, the Designated Authority of India still regards
China as a non-market econom
s in India to calculate the normal value of Chinese products. Finally,
China's export enterprises are affirmed as 31.70% dumping margin but the
related enterprises haven't answered the lawsuit.
In addition, taking into account of the imports volume, market share, im
volume & costs, profit margin and inventory, the In
ports price, capacity, sales
a have an extent of 20-25% of dumping on Indian domestic industry.
a
China, mainly chemicals used to m
hed the highest in 15 months, as per Bloomberg.
The Kingdom's non-oil exports to China reached 1.75
bln Saudi riyals (US$467 million) in March, up 34% from
a year earlier, according to data posted today on the
Department of Statistics and Information’s website.
The value of non-oil exports to China increased as
il prices, as well as the introduction of new products. prices for petrochemicals benefited from high
33% to Singapore and by 5.8% to India. More
The EU: Vietnam Shoes' Largest Export Market PUdaily, Shanghai-During the past four years, Vietnam
s by
29.7
tnam's leather shoes, which will
expand further Vietnam's shoe exports. It is predicted the
exported shoes with value of USD1.74 billion, increase
% on a year-on-year basis. Among which, 50% of the total
amounts were exported to the EU and accounting for the EU
market of 10%-15%.
Since from this April 1, the EU has cancelled the four-year
anti-dumping duty on Vie
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Chinese Polyurethane Monthly Report 201105
ann
Growth of 30.8% PUdaily, Shanghai-"Footwear orders from the EU
u
incre
last
in amounts and prices.
USD1
period of a year earlier. More
ual export income will reach USD6 billion, of which about USD 3 billion will come from the EU market.
Zhejiang Footwear Exports Achieve USD0.45 Billion With Year-on-Year
mo nted up greatly in the previous four months,
ased by 60% compared with the same period of
year" declared by principal of Aokang Group's
Foreign Trade Department.
Since from the cancel of the EU's anti-dumping
duty to Chinese leather shoes in April, Zhejiang's
footwear to export increases
The average unit price has been boosted up to 1.2/a pair, increasing by 17.89% from the same
4. Big Events in May in Detail
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