Covestro China president: polyurethane market trends next year will continue

'The future regardless of TDI or MDI, the overall trend is better, the growth should be higher than the GDP growth, the trend will continue in the future.' 'Just a new Covestro China president Sheng Bing Yong (Bjoern Skogum) in an interview with Polyurethane industry and TDI, MDI two major trends to make their own judgments.

He told reporters that polyurethane is a very interesting material to TDI, the market is mainly driven by supply and demand, some factories have a problem, can not start production at full capacity, it will cause tight supply.Therefore, the price of TDI mainly by The supply of products on the market to determine the MDI over the past few years a little overcapacity problem, the current situation better than before to achieve a balance.

'In addition, from a demand perspective, regardless of TDI or MDI in the future, the overall trend is positive. We also feel that we will continue to grow and are driven mainly by demand-driven products such as automobiles and home appliances,' said Sheng Bing Yong.

In his view, TDI, MDI growth should be higher than GDP growth, the trend will continue in the future. 'If you ask next year this trend will not change, then in this regard should not see any risk. Of course , Adding new capacity to the market will make the overall supply and demand tend to be more balanced In general, these two are still supply and demand-driven products, and I believe they will continue to do so in the future. "

It is noteworthy that 10 years ago, China business accounted for only 10% of Covestro's global operations, and up to now, this ratio has risen to 21% .Especially in the third quarter of this year, the United States suffered a hurricane, the performance of China has Beyond the United States, becoming the largest market Covestron.

'If the future GDP growth to judge, this ratio will rise.' Sheng Bing Yong said.

He said that the reason for this judgment is that the major demand areas for polyurethane, such as the automotive and electronics industries, will continue to grow in the future as well as other industries, including home, building, shoemaking and sports and leisure industries Polyurethanes are important, and although the sports and leisure industry does not look great now, it is also a very important industry. '

'Our products cover a very wide range of industries and fields and in the future there will be some emerging industries that can become demand areas for polyurethanes including wind turbine blade applications and infrastructure such as new road construction, Can actively participate.

He told reporters that China's' One Belt and One Road 'policy and western development policies will further boost the development of the polyurethane business.' We may be the earliest enterprises developing in the eastern coastal cities of China. Now as China develops further toward the western and central regions, We are also expanding toward these areas. '

The latest quarterly release shows that Q3 was the quarter with the strongest growth in its history: net income rose 89.6% to 491 million euros from the third quarter of last year, while EBITDA ) And sales increased by 50.2% and 16.9%, respectively, while sales of core business increased by 2.6% .It is reported that the increase in sales was mainly due to the increase in sales price, which contributed 18.4% of the motivation. Among them, the polyurethane business unit The sales price increase is particularly obvious.

Throughout the third quarter, core business sales of the polyurethane business segment increased by 4.3% over the same period of last year, mainly due to the strong performance of the TDI product group. Due to the generally good supply and demand conditions, the profit margin of the segment increased EBITDA over the same period last year More than double to 556 million euros while the company is expanding production facilities in Brunsbüttel in northern Germany and plans to double its annual MDI production to about 400,000 tons by the end of 2018.

2016 GoodChinaBrand | ICP: 12011751 | China Exports