The recent surge in Chinese polyurethane manufacturing capacity is poised to reshape the landscape for Nitrobenzene, a key raw material in the production of methylene diphenyl diisocyanate (MDI). Nitrobenzene prices have faced increasing downward pressure due to an influx of new facilities and production lines focused on polyurethane, as well as ongoing adjustments in MDI plant operations.
MDI, an essential ingredient in polyurethane production, relies on Nitrobenzene as fundamental feedstocks. Nitrobenzene is primarily hydrogenated to produce aniline, which is then used in MDI synthesis. The robust demand for polyurethane in industries ranging from automotive to construction has traditionally kept MDI prices stable, with tight market moderation. However, a combination of MDI plants going offline and new capacities in China is driving a unique dynamic in the Nitrobenzene market. Recently, Evonik announced expansion of their amine business, which specializes in polyurethane production,...
