On September 29, the board of directors of OCI, a major South Korean industrial chemicals producer, approved the permanent termination of its TDI production and sales business. The business has sales of about KRW 118 billion, accounting for 5.87% of the company’s 2025 consolidated revenue. Effective December 18, 2026, the exit from this low-margin business is aimed at improving overall profitability. Buyers seeking stable polyurethane raw material supply can review Toluene Diisocyanate (TDI).
Why OCI Is Exiting TDI
OCI plans to reallocate resources to higher-margin core business segments, such as semiconductor materials and advanced carbon chemicals. It is reported that OCI has operated the TDI business since its plant was built in 1991, with an annual capacity of about 50,000 t/y. OCI noted that the suspension timeline may be adjusted depending on progress, but independent directors and auditors unanimously agreed to the resolution, highlighting corporate governance support for the restructuring. Toluene diisocyanate (TDI) is a key raw material for polyurethane used in car seats, furniture cushions and insulation materials.
China Now Dominates Global TDI Supply
OCI said TDI is considered a highly volatile product due to capacity expansion and oversupply by global companies, including Chinese enterprises. Specifically, China has become the core global supply region for TDI. Overseas plants are aging and frequently undergo maintenance, resulting in weaker supply stability, while most new capacity is located in China: in the second half of 2025, Fujian Wanhua’s Phase II 360,000 t/y TDI unit came onstream; in January 2026, Shanghai Covestro’s 370,000 t/y technical upgrade project was put into operation. According to incomplete statistics, as of February 2026, China’s TDI capacity had reached 2.06 million t/y, accounting for more than 60% of global total capacity.
Chinese giants are also optimizing TDI production technology: in July 2026, Wanhua Chemical obtained a new invention patent for a TDI production system and method that meets the strict requirements of high-end polyurethane products for TDI purity and isomer ratio. In addition, Eastern Shenghong is laying out TDI as a new entrant, planning an investment of about RMB 13.33 billion that includes 150,000 t/y TDI, 50,000 t/y HDI, and downstream units.
China’s TDI Trade Remains Export-Led
In terms of market trade, China’s TDI trade remains export-oriented, with a relatively small import scale. In 2025, China’s TDI exports hit a record high, reaching 556,500 tonnes; in the first half of 2026, cumulative exports were about 332,100 tonnes, up 24.2% year on year, while cumulative imports were only about 2,180 tonnes—meaning exports were roughly 152 times imports. The reasons for strong export growth include China’s stable supply and cost advantages amid overseas energy and logistics pressures, as well as India’s temporary zero-tariff window on certain chemicals, which accelerated cargo flows into India, Vietnam, and the Middle East.
