The Impact of the US-China Trade War on the MDI Market
Release time:
31 Aug,2019

Aggregation MDI It is an important raw material for polyurethane and was initially listed as 2000 A list of Chinese import products worth hundreds of millions of dollars, which the U.S. Trade Representative has subjected to tariffs based on China’s trade practices. From 2018 year 9 month 24 Effective today, U.S. polymers imported from China MDI The import tariff is 10 %. This tax rate was subsequently in 5 month 10 Upgraded to on the day 25 %.
The main raw materials of polyurethane include polymers MDI , monomeric methyl diphenyl diisocyanate ( mMDI ), toluene diisocyanate ( TDI ) and polyether polyols (produced via the intermediate propylene oxide). These raw materials can be reacted in various combinations to produce different polyurethanes. The most common products are flexible or rigid polyurethane foams.
Polyurethane has a wide range of applications: it can be found in the houses we live in, the mattresses we sleep on, and the shoes we wear; even surfboards can be made from rigid polyurethane foam.
Global Aggregation MDI The market has been quite volatile recently. 2017 In [year], supply shortages caused by factory shutdowns and insufficient investment in production capacity led to polymerization. MDI Prices have surged. With the global economy cooling, demand has weakened. However, a significant improvement in supply has led to 2018 Prices plummeted in the second half of the year. Due to 2019 Peak ordering season in the first quarter of the year, aggregation MDI The market is recovering, and demand is regaining its vitality.
However, the escalation of the US-China trade war also has 25 % of trade tariffs will affect the global market, including the United States. MDI Growth in demand. Global economic growth forecasts are now expected to slow. One possible consequence of this slowdown is weaker construction activity, including in the United States, leading to a deceleration in the growth of demand for building insulation. The largest polymer in the United States MDI The end product is an insulation material based on rigid polyurethane and polyisocyanurate foam. Overall, compared to polymers in recent years… MDI Steady growth, future aggregation MDI Demand growth is more moderate. Additionally, industries facing their own challenges, such as the weakness in the automotive sector, are also expected to restrain U.S. aggregate demand. MDI Demand growth.
As the second-largest aggregator MDI Consumer countries, the recent consolidation in the United States MDI The trade landscape has shifted. Historically, the United States has been a hub MDI a net exporter. At present, the United States still exports large quantities of polymers MDI ,2018 annually exported more than 20 Ten thousand tons.
US aggregation MDI The market has recently shown a high demand growth rate. However, for many years the United States has not addressed its domestic major MDI Investing in production capacity. As U.S. import demand grows and polymerization MDI Market structure is tightening, and the United States is in 2018 The year has become a convergence. MDI a net importing country.
Subsequently, the U.S. market has become reliant on imports to meet demand. Imports into the United States have... 30 Ten-thousand-ton polymerization MDI There are approximately in China 71 % from China.
There is no doubt that the additional imposition 25 A tariff of % will make the aggregate MDI Markets, particularly in the United States, remain volatile. Tariffs and a slowdown in Chinese exports to the U.S. are expected to weigh on polymers. MDI Prices are rising.
America’s trade position will be rebalanced. Aggregation MDI Import volumes will be 2019 Decreases are expected. Export volumes are also projected to decline, as the U.S. market will continue to rely on increased domestic supply to offset reduced Chinese shipments. Order levels will maintain China’s trade surplus with the United States. Under these circumstances, polymers… MDI Consumers will face higher contract prices. Trade rebalancing is causing 2019 Another factor expected to drive price increases in the second half of the year. Due to the additional tariffs, supply shortages are unlikely in the long term. On the contrary, major end-users in the construction, home appliance, and wood-based composite industries will no longer be constrained by polyurethane material costs and will therefore refrain from slowing production.
Other polyurethane raw materials have also been affected by the US–China trade war. The United States has imposed tariffs on TDI and the imposition of a tax on propylene oxide 25 A tariff of %. 5 month 13 Day, China on polymerization MDI , mMDI and TDI Expropriation 25 a tariff of % and imposes a duty on propylene oxide 10 A tariff of %.