In-depth analysis: current situation and prospects of polyurethane industry at home and abroad

1) Polyurethane foam
Polyurethane foam is widely used in thermal insulation, furniture production, etc. According to data from Allied Market Research, my country's polyurethane foam (including flexible foam and rigid foam) sales volume was 1.3783 million tons in 2019, and is expected to reach 1.6526 million tons in 2022, with an average annual compound growth rate of 6.24% from 2019 to 2022.

The guidance of the "Thirteenth Five-Year Plan" development plan for the plastics processing industry points out that the "import substitution" strategy should be vigorously implemented to strive for the main products and accessories of the plastics processing industry to meet the needs of economic and social development, especially the high-end fields, by 2025. Some products and technologies have reached World leading level.

2) Polyurethane elastomer
Polyurethane elastomers are divided into casting type, thermoplastic type and mixing type according to the production process. They are widely used in steel, conveyor belts, papermaking rubber spokes and other fields.

In recent years, the proportion of polyurethane elastomers in polyurethane products in my country has been increasing. In 2015, the consumption of polyurethane elastomers was 860,000 tons, a year-on-year increase of 4.2%. In 2018, it rose to 1.07 million tons. The consumption continued to increase from 2019 to 2022. The reason is mainly due to the large-scale use of thermoplastic elastomers in the automotive field and the construction industry. (TPE) materials have driven the development of the industry.

3) Polyurethane coating
In 2015, the consumption of polyurethane coatings was about 1.65 million tons, accounting for 16% of the sales volume of polyurethane products. In 2021, it will reach 2.45 million tons, accounting for about 16%. At present, there are more than 60 kinds of polyurethane coatings, and the production enterprises are concentrated in coastal areas.

4) Polyurethane synthetic leather slurry
Synthetic leather PU slurry includes dry synthetic leather and wet synthetic leather. At present, my country is the center of the world's artificial leather and synthetic leather industry. In 2019, my country's synthetic leather pulp production accounted for nearly 85% of the world. In recent years, the consumption of synthetic leather slurry in my country has continued to decline. The reasons are:
First, solvent-based synthetic leather slurry will pollute the environment. Under the advocacy of green environmental protection, the demand and consumption of synthetic leather slurry has been suppressed.

Second, fierce competition among enterprises has compressed the industry`s profit margins.



In the future, the industry will innovate and popularize ecological and functional synthetic leathers such as water-based synthetic leather and solvent-free synthetic leather, improve the environmental protection of artificial leather and synthetic leather, and enrich the functionality.

2.4 Domestic polyurethane import and export
In terms of import volume, it increased slightly from 2017 to 2018, declined in 2019, continued to decline in 2020, and rebounded in 2021; in terms of export volume, it was similar to import changes. The reason:
First, the polyurethane industry has shifted from the pursuit of extensive expansion in quantity and scale to the intensive growth in pursuit of efficiency and quality. Many large polyurethane enterprises have successfully put into production, reducing their dependence on foreign markets
Second, the key technologies of isocyanate and Polyester Polyol are monopolized by multinational companies such as Bayer, BASF, and Huntsman. my country still needs to import high-tech polyurethane products, and the import volume remains above a certain level.
3. Conclusion
1) my country has become the main consumer market and producer of polyurethane. In the late 1990s, my country's polyurethane products were only 800,000 tons, reaching 3 million tons in 2005. The average annual growth rate from 2005 to 2010 was more than 15%. By 2015, it had reached 10.35 million tons, accounting for 40% of the world's total production and sales. The "Thirteenth Five-Year Plan" put forward the industrial policy of "adjusting structure, changing mode, and promoting development", and my country's polyurethane industry has entered a low-speed growth. In 2021, my country's polyurethane output will be 15.32 million tons, a year-on-year increase of 4.22%.

2) my country's polyurethane product exports are greatly affected by the international economic situation. The main reason is that most of my country's polyurethane products are mid- to low-end products, and most of the exporting countries are developing countries. Therefore, the industry must adjust its development direction, resolve the crisis of overcapacity, accelerate technology research and development, develop high-end, high-performance, and functional products, and enhance product competitiveness.
3) Product application areas are increasingly expanding. Over the years, the production and consumption of polyurethane products in my country have continued to grow. Demand from downstream markets such as home appliances, furniture, transportation, machinery, construction, and new energy drives the growth of consumption of polyurethane products. The industry must develop environmentally friendly polyurethane products, accelerate their application in areas such as building energy conservation, expand the application areas of differentiated, functional, and high value-added spandex fibers, and expand the application areas of TPU.

4) The industrial structure is continuously optimized. With the overcapacity of polyurethane, it is necessary to eliminate industries that are backward in technology and do not meet the requirements of green environmental protection. During the "14th Five-Year Plan" period, the polyurethane industry must promote the continuous optimization of industrial structure, product structure, and layout structure, and gradually solve the problems of unbalanced and inadequate development.