HS Code:
Methylenedi-p-phenylene isocyanate (MDI) falls under HS Code 292910, which covers isocyanates, a group of chemicals used primarily in the production of polyurethane foams, coatings, adhesives, and sealants. MDI is a critical raw material in industries such as construction, automotive, and furniture manufacturing due to its role in creating durable and versatile materials. It exists in various forms, including monomeric and polymeric MDI, with the latter being widely used for rigid foam applications. The global trade of MDI is driven by demand for energy-efficient insulation materials and lightweight automotive components. However, its trade is influenced by environmental regulations due to health and safety concerns related to handling and exposure.
Total Trade Volume
USD 10.5 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
Average Rate
5.2%
Highest Rate
10% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-US or within ASEAN)
Growing demand for energy-efficient insulation materials
Increased MDI consumption in construction for rigid polyurethane foams, driving trade volumes in regions with green building initiatives like the EU and North America
2021-2023
Shift toward lightweight materials in automotive sector
Rising exports to automotive manufacturing hubs like China and Germany for use in lightweight, fuel-efficient vehicle components
2020-2022
Tightening environmental regulations
Higher production costs and trade barriers due to compliance with stricter chemical safety standards, affecting smaller exporters
2019-2023
The European Union updated its REACH regulations, mandating lower exposure limits and enhanced safety data sheets for MDI imports and production, aiming to reduce occupational health risks.
August 2023
Increased compliance costs for exporters to the EU, potentially reducing trade volumes from non-compliant regions while favoring certified producers.
Major Chinese chemical companies announced new MDI production facilities to meet domestic and export demand, positioning China as a key global supplier.
March 2023
Likely to increase export competition, potentially lowering global prices but raising concerns over overcapacity and environmental impact.
Ongoing trade disputes led to additional tariffs on MDI imports between the US and China, disrupting supply chains for downstream industries.
January 2022
Shift in trade routes, with US importers sourcing more from South Korea and Europe, while China redirects exports to Southeast Asia.