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Polyurethane Exterior Wall Insulation Drives MDI Demand Growth

Jun 08, 2020

The continuous development of new building materials, due to the introduction of government policies on building energy efficiency, the recognition of new building materials, and the excellent performance of first-class polyurethane itself, the polyurethane exterior wall insulation market has broad prospects. According to estimates from insiders, the demand for MDI for external wall insulation in 2009-2010 will be 25,000 tons and 42,000 tons, respectively.

Considering the global economic recovery and the growth of new domestic MDI demand, we believe that the global MDI industry, including the Chinese market, will be in a relatively balanced state of supply and demand in the next two years. Under the premise that the price of crude oil (76.18, 0.13, 0.17%) is within the average price range of US$60-80/barrel, we expect MDI product prices to rise steadily in 2010.

If crude oil prices rise rapidly, the cost of Yantai Wanhua may increase. At the same time, if the development of Yantai Wanhua's export market is not smooth, product sales may be lower than expected.

However, the demand for new building materials is very large, so the development market for energy saving and environmental protection is also very large, and the continuous expansion is also very rapid.