Chinese TPU film market registers CAGR of 17% from 2008 to 2014

16-Dec-15

The consumption amount of Chinese TPU film market has reached RMB 2.08 bln in 2014 with a CAGR of 17% from 2008 to 2014. As for TPU hot melt adhesive film, in 2014 the consumption amount has increased by 26% compared with previous year, as per Research and Markets. According to each TPU manufacturers' production plans, In 2014 China newly added about 50,000 tons of TPU capacity, which mainly came from Huntsman Polyurethanes (China) Ltd, Xuchuan Chemical, Polyol Macromolecule Polymer (Fujian) Co., Ltd and Bangtai Polymeric New-materials Co., Ltd. Among which, a TPU plant with capacity of 21,000 tons built up by Huntsman has went into operation in February 2014. And based on this plant, Huntsman has become the third largest TPU manufacturer in China. Viewing from downstream markets, currently the application of domestic TPU film mainly concentrates in shoe materials, waterproof and moisture permeable fabric, upscale leather products and inflatable materials etc. Shoe material is always the largest consumption market of TPU film in the past few years, in 2014 it consumed nearly 34% of total TPU film sold in China. But its proportion is continuing to decreasing. Due to the increasing demand for sportswear and entry luxury leather products, waterproof and moisture permeable fabric, upscale leather products had and will continue to consume more and more TPU film. In 2015, due to the slowed economic development, orders from terminal market have reduced. On one hand, the supply from raw material market continued to increase, which lead to prominent imbalance between supply and demand. On the other hand, shoe industry has gradually transferred to Southeast Asia, domestic output has significant decrease (the same situation for synthetic leather). As for prices, oversupply of TPU raw materials market is obviously worsen. The whole upstream market is under de-stocking situation. The fall in raw material market has directly affected TPU market, especially for general grade TPU, many manufacturers had forced to fight in the price war.