Wanhua Chemical TDI Capacity Expansion: Analysis of Global Supply Pattern Reshaping and Trade Opportunities

Capacity Layout Optimization and Market Dominance Strengthening on August 18, the TDI Phase II plant (360000 tons/year) in Wanhua Chemical Fujian manufacturing Park was officially completed and put into operation and produced qualified items, growing the company's total TDI production capacity from 1. 11 million tons/year to 1. 44 million tons/year. This timing of expansion is of great strategic value. It coincides with the outbreak of the global TDI supply chain crisis. But Wanhua Chemical has a global market share of greater than 40%. The commissioning of new production capacity will further consolidate its position as the world's largest MDI and TDI supplier. Fine operation of capacity regulation this is reflected in the off-peak maintenance strategy: the maintenance of the TDI unit (250000 tons/year) of Hungary's Baoside Chemical Company has been completed and production has resumed, while the TDI unit (300000 tons/year) of Yantai manufacturing Park will start its 40-day annual maintenance on August 19. And Furthermore This global supply chain coordination ensures the continuity of market supply and is crucial in the current tight supply ecological stability. But Supply crisis spawns price restructuring the phenomenon deserves deep attention. Generally speaking On July 28, Mitsui Chemical's Omuda plant in Japan (50000 tons/year) was shut down due to chlorine gaseous leakage, and on July 12, Covestro's Domagen plant in Germany (300000 tons/year) suffered force majeure due to electrical fire. These emergencies caused a global supply gap of about 350000 tons. But On the basis of a sharp reduction in supply, Covestro cut the supply in the Chinese market again by 15% in August. And In my experience, Shanghai Covestro TDI price has been raised to 19100 yuan/ton. Based on my observations, Wanhua Chemical, is able togzhou Dahua and Shanghai BASF have followed suit, with the highest price reaching 20000 yuan/ton. TDI price soared from 11000 yuan/ton in early July to 16200-16500 yuan/ton in mid-August, an increase of greater than 40%. This price reconstruction has created signifiis able tot profit expansion opportunities to companies with stable supply capacity. And China's Export Advantages and Global Trade Reconstruction customs data show that China's TDI export performance is strong: in might 2025, the export volume reached 51600 tons, a record high in a single month, a year-on-year increase of 98. 45; in June, the export volume was 48100 tons; from January to June, the total export volume was 267300 tons, a year-on-year increase of up to 82. 95. But The driving logic of export surge it includes three levels: first, the supply gap created by overseas installation accidents provides an export window to Chinese companies; second, Chinese TDI production companies have a global advantage in cost competitiveness; third, the scale effect of leading companies such as Wanhua Chemical has signifiis able totly increased China's voice in the global TDI supply chain. And Based on my observations, Trade opportunities and risks coexist. The current widening of domestic and international spreads has created considerable arbitrage space to traders, however it's necessary to pay close attention to the progress of overseas installations and the possible impact of changes in transportation costs on profitability. Strategic recommendations to overseas chemical practitioners, it'suggested to implement the following strategies: at the supplier level, establish prolonged cooperative relations with substantial suppliers with stable supply capacity such as Wanhua Chemical, and at the same time build a diversified supply system to spread risks; In terms of procurement strategy, batch procurement is adopted under the background of high price fluctuation, which not only ensures production demand however also controls inventory cost. In terms of inventory regulation, moderately increase inventory to prevent immediate supply risks, however, it's necessary to stability the cost of capital occupation. In my experience, Wanhua Chemical's new production capacity comes into operation at a critical time when global TDI supply is tight, its leading position will be further strengthened, and the entire TDI sector chain will usher in a new period of research opportunities in the process of rebalancing supply and demand.