Diisocyanates & Polyisocyanates Market Overview

Isocyanates are a group of highly reactive chemicals. An organic compound containing two isocyanate groups is known as diisocyanate. In terms of demand by type, the market is segmented into Methylene Diphenyl Diisocyanate (MDI), Toluene Diisocyanate (TDI), and Polymeric MDI. Methylene Diphenyl Diisocyanate holds the largest share owing to its wide range of use in Polyurethane products such as adhesives, coatings, automotive seats & interiors, paints, and a wide variety of flexible, semi-rigid, and rigid foams.

Rigid & Flexible Foam is the largest application for Diisocyanates and Polyisocyanates accounting for more than 60% of the total demand.

Diisocyanates & Polyisocyanates Region Analysis

Asia Pacific is the largest market for Diisocyanates & Polyisocyanates accounting for more than 60% of the global market share followed by North America and Europe. The market in the Asia Pacific region is driven by the strong presence of Automotive and Construction industries. China is the world's largest producer and consumer of polyurethane products and MDI is commonly used in China for rigid and flexible foam manufacturing. Polyurethane is used in the manufacture of cars as it helps in reducing the weight of the vehicle and PU coatings are used as protection against corrosion and UV radiation. Flexible foams are used for cushions, bedding, and furniture and are expected to boost the Diisocyanates and Polyisocyanates market in the forecast period.

Key Suppliers of Diisocyanates and Polyisocyanates:

• Wanhua Chemicals
• Anderson Development Company
• BASF SE
• Huntsman Corporation
• The Dow Chemical Company
• Covestro
• Yantai Sanjiang Chemical Industry

In January 2023, BASF announced that the company started the final phase of its expansion for MDI at its Geismar site in Louisiana which will increase the capacity to 600 thousand tons.  

Huntsman has started the operations at its new MDI splitter at its US site in Geismar, Louisiana with a production capacity of 500 thousand tons.

Rising demand for Polyurethane Products

MDI is used in the manufacture of polyurethane foams which are widely used in various uses owing to its versatility, excellent resistance to heat transfer, strength-to-weight ratio, and durability polyurethane is used to make several types of insulation materials, sealants, and adhesives for homes and buildings.

In the automotive industry, Polyurethane is commonly used to reduce the weight of the cars which helps in improving the fuel efficiency of the vehicle. An average car uses 60 pounds of polyurethane material. It is also used in the manufacture of car seats, bumpers, interior ceilings, dashboards, and bumpers.

MDI foams are used as insulation in refrigerators in commercial and residential food storage where they provide superior insulation properties while saving energy and achieving the same performance requirements.

TDI flexible foams are used in furniture, carpets, and bedding overlay. Polyurethane helps in making the floors more durable, aesthetically pleasing, long-lasting, and easier to maintain. Flexible PU foam can be used as a carpet overlay which can help in increasing the lifespan of the carpet, increase its durability while adding comfort and support.

Environmental Impact

Diisocyanates and Polyisocyanates are known to cause several health problems if exposed for a long period of time which include skin irritations, asthma, and dyspnoea. As per the OSHA (The Occupational Safety and Health Administration), an exposure level of 20 ppb is allowed for dealing with MDI. Phosgene is used for the manufacture of isocyanates, which is harmful to the environment and possess severe health hazards to human health.

Fluctuations in the prices of crude oil can also hamper its market growth because crude oil is used to manufacture isocyanates.

The COVID-19 pandemic and the ongoing Russia-Ukraine war are some of the factors due to which there have been several capacity reductions and shutdowns of plants owing to the decrease in demand for MDI and TDI over the years.

Covestro has halted plans to build an MDI plant at its Baytown, Texas plant with a total capacity of 500 thousand tons due to the growing inflation and the increasingly volatile economic environment caused by the Russia-Ukraine war.

Due to the rising raw material prices and inflation, BASF has announced to close down its TDI plant in Ludwigshafen, Germany.

In March 2023, Mitsui Chemicals announced that it is cutting the production capacity of the Toluene Diisocyanate plant at Omuta, Japan, from 120 thousand tons to 50 thousand tons in July 2025.