Isocyanate Market Share

Isocyanate Market Share Analysis

Fluctuations in the prices of raw materials, delays in the start-ups of BASF SE and Sadara, and other plant shutdowns and unforeseen events by BASF SE and DowDuPont have led to a shortage of isocyanates in the US. The surge in demand for isocyanates from major industries like construction, automotive, furniture, textile, and electrical and electronics is prompting global isocyanate market players such as BASF SE, DowDuPont, Covestro AG, Huntsman Corporation, and Wanhua to expand their production capacities worldwide.

Key players are investing in existing plants and establishing new ones to meet the growing demand. For instance, in October 2018, Covestro AG, a major polyurethane producer, proposed a USD 1.7 billion investment for a new methylene diphenyl diisocyanate (MDI) plant in Baytown, Texas. The company also planned to double production capacity at its MDI plant in Germany to 400,000 metric tons by 2019.

In January 2018, BASF SE announced plans to start a new MDI synthesis unit in Geismar, Louisiana, with the goal of doubling the company's MDI production capacity to around 600,000 metric tons in the coming years. Additionally, in April 2017, Wanhua Chemical Group Co., Ltd proposed a USD 1.1 billion investment to build an MDI plant in Louisiana.

The rapidly expanding industrial base in emerging economies, combined with improving living standards and rising per capita disposable income, is driving the demand for polyurethane foam, coatings, and adhesives, consequently increasing the demand for isocyanates. This trend presents significant opportunities for major players in the global isocyanates market to establish new production plants in the emerging markets of Asia-Pacific and the Middle East and Africa region in the coming years. This expansion can cater to the growing needs of these regions and contribute to the overall growth of the isocyanates market.