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

Aggregation MDI It is an important polyurethane raw material that was initially listed. 2000 A list of Chinese import products worth hundreds of millions of dollars, which have been subject to tariffs by the U.S. Trade Representative based on China’s trade practices. From... 2018 Year 9 Moon 24 Starting from today, U.S. polymers imported from China MDI The import tariff is 10 %. This tax rate was subsequently... 5 Moon 10 Daily increase to 25 %.
The main raw materials of polyurethane include polymerization. MDI Monomeric methyl diphenyl diisocyanate ( mMDI ), toluene diisocyanate ( TDI ) and polyether polyols (prepared via the intermediate propylene oxide). These raw materials, when reacted in different combinations, can produce various types of polyurethanes. The most common products are flexible or rigid polyurethane foams.
Polyurethane has a remarkably wide range of applications: it’s found in the houses we live in, the mattresses we sleep on, and even the shoes we wear—and even surfboards can be made from rigid polyurethane foam.
Global aggregation MDI The market has been experiencing significant volatility recently. 2017 This year, supply shortages caused by factory shutdowns and insufficient investment in production capacity have led to polymerization. MDI Prices have surged. Demand has weakened due to the global economic slowdown. However, supply has improved significantly, leading to... 2018 Prices plummeted in the second half of the year. Due to... 2019 Peak order season in the first quarter of the year, aggregate. MDI The market is rebounding, and demand is regaining its vitality.
However, the U.S.-China trade war is escalating further. 25 % of trade tariffs will affect the global economy, including the United States. MDI The growth in demand. Global economic growth forecasts are now expected to slow down. One possible consequence of this slowdown in economic growth is weaker construction activity—including in the United States—leading to a slower increase in demand for building insulation. The largest polymer in the U.S. MDI The insulation material used for the terminals is a rigid polyurethane and polyisocyanurate foam-based material. 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 automotive sector’s weakness—are also expected to restrain U.S. polymer demand. MDI Demand is growing.
As the second-largest aggregator MDI Consumer countries, the aggregation in the U.S. in recent years MDI The trade situation has changed. Historically, the United States has been a hub for aggregation. MDI a net exporting country. Currently, the United States still exports large quantities of polymers. MDI ,2018 Exported more than per year. 20 Ten thousand tons.
United States aggregation MDI The market has recently shown a relatively high growth rate in demand. However, for many years, the U.S. has not addressed its domestic major... MDI Invest in production capacity. As U.S. import demand grows and polymerization... MDI The market structure is tightening, and the U.S. is... 2018 The year has become a convergence. MDI a net importing country.
Subsequently, the U.S. market has become reliant on imports to meet its demand. Imports into the U.S. 30 Ten-thousand-ton polymerization MDI About half of the Chinese 71 % from China.
There is no doubt that the additional tariffs... 25 A tariff of % will enable aggregation. MDI The market, particularly in the U.S., continues to be volatile. Tariffs and a slowdown in China’s exports to the U.S. are expected to affect polymerization. MDI Prices are rising.
The U.S. trade position will be rebalanced. Aggregation. MDI The import volume will be 2019 Year-on-year decrease. Export volumes are also expected to decline, as the U.S. market still has ample domestic supplies to offset China’s reduced shipments. Order volumes will continue to keep China in a trade surplus with the U.S. Under these circumstances, polymerization... MDI Consumers will face rising contract prices. Trade rebalancing is driving this. 2019 Another factor expected to drive price increases in the second half of the year is that, 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 composite materials industries will no longer be constrained by the cost of polyurethane materials and will thus avoid slowing down production.
Other polyurethane raw materials have also been affected by the U.S.-China trade war. The United States has... TDI And levy on propylene oxide 25 % tariff. 5 Moon 13 Day, China opposes aggregation. MDI , mMDI and TDI Collection 25 a tariff of % and impose a tariff on propylene oxide 10 % tariff.