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Why the price of TPU soared in the beginning of 2021
February 25 , 2021

TPU is a polyurethane elastomer product. The raw materials of TPU such as polyol, MDI, BDO, adipic acid, ethylene glycol, etc. are all petroleum derivatives or by-products. In the beginning of 2021, the "energy crisis" hit global and domestic chemicals soared! A few days ago, many refineries closed! Oil prices, natural gas, and chemical products have skyrocketed! The biggest increase reached 4000%, and Oil prices surged to their highest level in about 13 months. The large-scale destruction from the cold weather in the United States has pushed oil prices to their highest levels so far this year. It also threatens the production of oil refineries. Energy giants such as Exxon Mobil, Valero Energy,Total oil company were temporarily closed. Crude oil production plummeted.


In 2020, affected by the irresistible factor of epidemic, the supply and demand imbalance was severe in the BDO market in the first half of the year. Downstream demand burst in the third and fourth quarters, while some BDO devices were still under low load production or parking, (including: Xinye’s device was stopped for maintenance on March 25, restarted on November 23; Dongyuan’s device was stopped on March 5th, restarted on September 6th; Shaanxi Ronghe’s device was stopped for maintenance in mid-to-late March, restarted on November 12; Tianye’s device was stopped for maintenance on March 25th, The device was restarted on the November 12th; the Hemei’s device was shut down for maintenance on November; the Tianhua’s device was shut down for maintenance on the 9-24th, and returned to normal in mid-to-late November.) So, the supply of spot goods was tight, and Prices of BDO have risen sharply and persistently which is at a historical high in the past 6 years. The price of BDO is currently keeping rising and price updated everyday; The price of AA is affected by the price increase of pure benzene listing; due to the frequent foreign MDI devices malfunctions affected by the cold wave, the price of pure MDI remains high. Affected by the sharp rise in the main raw materials, the price of TPU will continue to rise.


During the Spring Festival, the two major domestic TPU manufacturers did not stop work during the holiday. The demand of BDO still exceeds supply. The price of BDO continues to rise and at a historical high in the past 6 years; AA was affected by the increase in the price of pure benzene; The price of pure MDI remained high due to frequent foreign MDI devices malfunctions affected by the cold wave. Due to the sharp increase in the price of TPU main raw materials, the cost of the TPU product keeps rising. As the supply of upstream raw materials BDO is very tight, production of TPU is limited in quantity. We wish customers to place reasonable orders according to their own factory orders.

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