Cangzhou, Hebei – China’s TDI maker Cangzhou Dahua posted CNY 32m ($4.5m) net profit in H1 2019, down from CNY 768m in H1 2018. Revenue during the period dropped 56% year on year to CNY 1.1bn.
China’s TDI price in H1 2019 was on average 56% lower than in H1 2018, said the company’s half year report. TDI accounted for 83% of Dahua’s total revenue.
Covestro’s 300kT/year TDI facility and BASF’s 300kT/year facility in Europe both started normal operation last year. This closed the supply-demand gap which had existed in the global market since Q4 2018. As global demand and supply came back into balance there was more supply to China’s domestic market.
Wanhua’s 300kT/year facility in Yantai, Shandong also started operation at the end of 2018. Products went on the market in Q1 2019, adding to China’s local supply, said the report.
During the half year Dahua produced 84kT TDI and sold 77.5kT. This compares with 86.6 kT production and 85.9 kT sales in H1 2018.