[Industry Focus]：Wanhua Chemical TDI will be expanded again, and its production capacity will reach 1.42 million tons/year after completion, ranking first in the world.

On April 18, Wanhua Chemical's official website released the "Environmental Impact Assessment Report of 360000 Tt/Year Expansion Project of Wanhua Chemical (Fujian) Co., Ltd.". On April 23, Wanhua Chemical's official website released the "First Public Announcement of Environmental Impact Report of Wanhua Chemical (Fujian) Co., Ltd. TDI Phase I Technological Transformation and Capacity Expansion Project of 360000 Tons/Year".

On April 28, 2023, Wanhua Chemical acquired 47.81 of Yantai Juli Fine Chemical Co., Ltd. held by Xinjiang and Shandong Xu Investment Management Center (Limited Partnership) for 1.785 billion yuan. Yantai Juli has a TDI capacity of 150000 tons/year in Xinjiang.

On May 23, 2023, Wanhua Chemical announced that the 250000-ton/year TDI unit of Wanhua Chemical (Fujian) Co., Ltd. produced qualified products on May 22, realizing a one-time start-up success.

So far, Wanhua Chemical's total TDI production capacity has jumped to 950000 tons/year, ranking first in the world. (Yantai 300000 tons of TDI capacity, Hungary 250000 tons of TDI capacity)

if the two expansion projects are completed, Wanhua Chemical's TDI capacity will increase by another 470000 tons, and its total TDI capacity will reach 1.42 million tons/year, ranking first in the world. Far ahead.

1. Overview of global TDI capacity

in the global chemical industry, toluene diisocyanate (TDI) as an important chemical raw material, its production capacity and supply situation has been concerned. At present, the total global TDI production capacity is 2.92 million tons/year, which is obtained after excluding some units that have been discontinued or closed. Among them, China's TDI production capacity occupies an important position, totaling 1.17 million tons/year, accounting for 40% of the world's total production capacity, highlighting China's strong strength in the field of TDI production.

2. Operation status of main domestic TDI devices

observing the operation of the main TDI production enterprises in China, it is not difficult to find that most of the current devices are in the stage of shutdown, shutdown, low load or load reduction. This situation is mainly affected by market demand, raw material supply, environmental protection policy and other factors. In particular, the complete shutdown of BASF's 300000-ton/year TDI plant in Europe and the long-term shutdown of some plants in Cangzhou Dahua have further affected the supply pattern of the global TDI market.

3. Impact of stagnant supply of overseas installations

in recent years, the supply of overseas TDI devices has stagnated significantly. For example, in April 2023, Japan's Toscho shut down its 25000 t/a TDI plant, which to some extent affected the supply stability of the global TDI market. At the same time, China's TDI supply has shown a steady trend, thanks to the continuous development of China's chemical industry and the continuous development of overseas markets.

4. China's TDI exports and imports

with the continuous expansion of overseas markets, China's TDI exports increased year by year. According to customs data, my country's cumulative export volume of toluene diisocyanate (TDI) reached 332600 tons in 2023. Although it has declined slightly from 2022, the total export volume remains high, showing the competitiveness of my country's TDI in the global market. However, entering 2024, China's TDI export volume has dropped significantly, and the cumulative export volume from January to February is 40.9 lower than that of the same period in 2023. This was mainly due to reduced export programme volumes by major suppliers due to tight market supply.

At the same time, China's TDI imports have shown a growth trend. From January to February 2024, China's cumulative TDI imports increased by 45% compared with the same period in 2023. This change may be affected by multiple factors such as domestic market demand, price factors, and international trade policies.

5. Market Trend Outlook

considering the global and Chinese TDI production capacity, plant operation, import and export situation and other factors, it can be predicted that the TDI market will show the following trends in the future: first, with the recovery of the global economy and the sustainable development of the chemical industry, TDI demand is expected to maintain steady growth; Second, due to environmental protection policies, raw material supply and other factors, some TDI devices may continue to face the risk of shutting down or reducing production; third, changes in the international trade environment will have a profound impact on the import and export of TDI. Enterprises need to pay close attention to relevant policy developments and flexibly adjust market strategies.