Executive Summary : -
Methylene Diphenyl Diisocyanate (MDI) is primarily used in manufacturing of polyurethane foams such as rigid foams & molded flexible foams. It is also used for making flexible plastics. Aniline, usually derived from nitrobenzene is reacted with formaldehyde, to produce MDI which is further reacted with a polyol to form polyurethanes. Excellent insulating properties and rigidity of MDI makes it ideal for use in construction, automobile and refrigeration industry as not only does the material protect and dampens noise, but also helps in saving energy through heat insulation. Other applications of MDI are in packaging, paints & adhesives, and others.
MDI production is driven by three major players as they collectively account for around 65% of global capacities. Recently, in 2017, Sadara Chemicals, a JV between Saudi Aramco and The Dow Chemical Company established a 400kt/year plant in Jubail, Saudi Arabia. Globally, Asia-Pacific region holds the largest market share with China being the leading country, followed by North America and Europe. Historically, the MDI market grew by 4.5% CAGR for the period 2011-2015 and is expected to grow at around 5% CAGR for upcoming years until 2025.
