Yantai Wanhua is expected to achieve polyurethane integrated industrial chain

Yantai Wanhua is the leading manufacturer of MDI (diphenylmethane diisocyanate) in China and the largest MDI manufacturer in the Asia Pacific region. MDI is an important raw material for producing polyurethane products and is widely used in various fields of daily life. According to the different degrees of functionality, it is mainly divided into two forms: pure MDI and polymeric MDI. Pure MDI is mainly used for the production of pulp, sole liquid, spandex and other products; polymerization MDI is used to produce polyurethane rigid foam, used in refrigerators, freezers, pipe insulation and other fields.

The MDI industry is in an oligopolistic competition model. There are fewer companies in the industry, competition is not fierce, and the profitability of products is also relatively strong. It is more attractive to companies outside the industry. However, MDI's production technology barriers are relatively high. At present, only one local company in Yantai Wanhua has mastered its core production technology, and several companies in the industry tend to be blocked by technology and the industry has a high barrier to entry.

With the relaxation of the national monetary policy, the downstream apparel leather industry in pure MDI will improve, and the demand for aggregated MDI will benefit from the relaxation of the flame retardant standard for exterior wall insulation materials. In 2012, MDI demand is expected to rebound. In years of stable demand, MDI prices tend to fluctuate with seasons and show regularity. Specifically: the beginning of the Lunar New Year to the first half of the Lunar New Year is the low price range for the whole year, before the Spring Festival, the dealer's stock supplements drive the price to rise slightly, and after the Spring Festival, the downstream construction starts to enter the production season, driving up the price of MDI, which will last until April-May. .

Yantai Wanhua is expected to achieve top-down polyurethane industry consolidation in the future. Compared with foreign giants such as BASF and Bayer, the industry concentration of polyurethane in China is still very low and there is a lot of room for improvement. With Yantai Wanhua completing its layout in the upstream of polyurethanes, especially the combined polyether industry, it is advancing downstream and completing the industry integration from top to bottom is an inevitable trend.

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