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    Home > Chemicals Industry > China Chemical > Due to the shortage of raw materials for isocyanate, the supply of MDI market in the United States is tightening

    Due to the shortage of raw materials for isocyanate, the supply of MDI market in the United States is tightening

    • Last Update: 2022-04-12
    • Source: Internet
    • Author: User
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    Due to the shortage of raw materials used in isocyanate production, the supply of methylene diphenyl diisocyanate (MDI) in the United States is facing further tightening


    Dow and Covestro recently announced force majeure at their MDI plants in the United States, while Huntsman’s MDI plant in Geismar, Louisiana is experiencing partial shutdowns.


    The impact of hurricanes Laura and Delta

    The impact of hurricanes Laura and Delta

    The impact of Hurricanes Laura and Delta on the U.


    Although the hurricane did not have a significant impact on the US Gulf MDI plant, the factories that produce intermediate chemicals such as aniline, nitrobenzene and chlorine have been restricted


    Due to the closure of railways and waterways, logistics was also interrupted, which also led to restrictions on the supply of intermediate chemicals to the isocyanate plant


    According to the Chlorine Institute, since the outbreak of the coronavirus, the operating rate of chlor-alkali plants in the United States has been at a low point for many years, and the operating rate in September has dropped from August


    Westlake’s 1.


    The carbon monoxide problem

    The carbon monoxide problem

    Recently, the shortage of carbon monoxide (CO) is also one of the reasons for the tight supply of MDI


    Chlorine reacts with CO to form phosgene, and then reacts with methylene diphenylamine (MDA) to form MDI


    Although the demand for MDI and downstream polyurethanes has been increasing, the shortage of these intermediate chemicals has reduced the operating rate of MDI in North America


    Demand rebound

    Demand rebound

    MDI's consumption fell sharply during the strictest coronavirus-related restrictions on economic activities in the previous second quarter, and demand began to recover strongly in the third quarter


    In recent months, the operating rate of the automotive industry has risen sharply, as auto and auto parts manufacturers are working to supplement the supply chain, after the operating rate of the entire industry fell to its lowest level in history in April and May


    In recent months, as travel and entertainment expenditures have been delayed, consumers have spent a large part of their disposable income on home decoration, and the demand for home appliances has also increased


    The construction industry is also a strong growth point for MDI demand.


    MDI is mainly used for polyurethane foam, accounting for about 80% of global consumption


    Major US MDI producers include BASF, Covestro, Dow and Huntsman


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