Suzhou, Jiangsu – Demand has risen in China’s polyurethane industry since the second quarter, notably in cold chain, refrigerators and freezers, according to a China conference held in November by the China Polyurethane Industry Association (CPUIA). Freezer production reached a record high in the quarter.
‘Coronavirus had rather minor impacts on [China’s] PU industry, and I believe most companies in the sector are likely to reach their original targets for year-on-year growth,’ CPUIA chairman Yang Maoliang told the conference.
Earnings at Chinese diisocyanate makers such as Wanhua and Dahua nosedived over the first half of 2020, but have been improving since the third quarter. Other segments generally reported higher earnings compared with a year ago, CPUIA said.
Last year, China produced CNY150bn ($22.7bn)-worth PU feedstock and CNY200bn-worth PU products. The country accounted for 95% of the world’s production of freezer containers, 60% of footwear and 70% of toys.
In 2019, China’s PU feedstock capacity arrived at 12.4mT/year, with a nearly 4% average annual growth rate since 2015. Production of such materials amounted to 8mT in 2019, with a 6.5% annual growth rate since 2015.
‘We haven’t had high growth rates since 2015, but the industry has been in quality development,’ Yang said.