Hello, this is the ISOL Trend Analysis Team.
It is difficult to discuss the global polyurethane market without mentioning Wanhua Chemical. Wanhua goes beyond simply being labeled as 'China's largest chemical company' and plays a de facto global benchmark role in the core material MDI.
One of the most significant features of Wanhua Chemical is that its growth path closely overlaps with the history of the polyurethane industry. Starting from technological self-sufficiency in the late 1990s, it has now established itself as the world's largest supplier encompassing both MDI and TDI. In particular, in the MDI sector, it has raised its global market share from about 22% in 2020 to 32% by 2024, securing a unique position as a single company.
The key that has made this position possible is a consistent capacity strategy. Wanhua has continuously expanded large-scale facilities based on a vertically integrated structure that connects raw materials, intermediates, and final isocyanates. Currently, its MDI production capacity alone reaches 3.8 million tons per year, and considering additional expansions in the Fujian region, this figure may increase further. This is not merely an increase in volume but a structural choice to maintain supply leadership amid market volatility.
Interestingly, Wanhua does not merely remain a 'high production company.' While the polyurethane sector is still the foundation of the company, it is simultaneously expanding upstream and downstream through its petrochemical and new materials sectors. The petrochemical sector plays a role in securing cost stability and supply stability despite low margins, while the new materials sector is expected to be Wanhua's second growth pillar in the future.
Looking at the global competitive landscape, the MDI market is still dominated by a few companies. However, recent data shows that new capacity expansions are very limited, and the companies that continue to achieve meaningful expansions are concentrated in Wanhua Chemical and some Asian firms. In this regard, Wanhua is closer to being a company that defines the market structure rather than just a participant.
The ISOL Trend Analysis Team evaluates Wanhua Chemical as follows.
Wanhua is not a company that follows prices, but rather a company that creates the environment in which prices and supply and demand are formed. If the global MDI market continues to maintain a structure sensitive to events, Wanhua's capacity strategy and operational choices are likely to become significant signals in themselves.
In the future, when analyzing the MDI and polyurethane markets, it will become increasingly important to observe not just simple market news but also how Wanhua Chemical operates its capacity in terms of speed, region, and method. ISOL will continue to analyze the movements of global chemical majors from this perspective.