November 15, 2024 – China’s TPU Industry Soars to New Heights Amidst Global Competition
China has cemented its status as a major producer and consumer in the global TPU (thermoplastic polyurethanes) market. By 2023, the country’s TPU output skyrocketed to 707,000 tons, with consumption closely following at 610,000 tons. This vast market has attracted a myriad of domestic and international players, including industry leaders such as Wanhua Chemical, BASF, Covestro, Lubrizol, Dawn Polymer, Meirui New Materials, and Huafeng Chemical.
Despite China’s expanding TPU capacity, international giants like BASF, Covestro, and Lubrizol still dominate the high-end applications, particularly in the high-performance TPU segment. This year, the domestic TPU market has seen relentless activity, with companies ramping up their presence. Covestro, for instance, announced the establishment of its Asia-Pacific Application Development Center in Guangzhou and plans to build its largest TPU plant in Zhuhai, with an expected annual capacity of 120,000 tons upon completion in 2033. Domestically, Dawn Polymer’s wholly-owned subsidiary, Shandong Dawn Degradable Materials, is set to invest in a “New Material Expansion Project (Phase II),” encompassing a 100,000-ton TPU and 60,000-ton polyol construction project.
Notably, BASF is also strategically positioning itself in the Chinese market. Last year, the successful launch of the second TPU unit at its Zhanjiang integrated site marked the opening of the world’s largest single TPU production line. With multiple TPU facilities in Shanghai, Taiwan, and Japan, BASF further solidifies its leading position in the global TPU arena.
According to AsiaMB’s industry insights, TPU market prices have exhibited a volatile yet weakening trend this year. Compared to the previous year, TPU prices have continued to decline, with the current year’s price trajectory significantly lower than that of 2022. Data from the BuyChemPlast Research Institute reveals that the mainstream average price in China’s TPU industry was 23,500 yuan/ton in 2022, but it dropped below 20,000 yuan/ton in 2023 and further to 15,000 yuan/ton this year. This price movement underscores the intense competition in the TPU market and hints at an impending industry reshuffle and integration.