On January 30, Covestro announced the completion of a major capacity expansion and upgrade for its toluene diisocyanate (TDI) production facility at the Shanghai integrated site. The annual TDI capacity has been increased from 310,000 tons to 370,000 tons, a rise of nearly 20%, further strengthening its supply capabilities in the Asia-Pacific region. Covestro's Shanghai integrated site is located in the Shanghai Chemical Industry Park and is the company's largest production base globally. This expansion did not involve building new production lines but was achieved by optimizing existing production processes and infrastructure, resulting in a significant increase in output scale without additional land or major equipment investment.

Covestro continues to enhance its competitiveness in the TDI sector. In March 2025, its largest TDI plant in Europe, located in Dormagen, Germany, underwent a modernization upgrade. With an annual capacity of 300,000 tons, the core of the upgrade focused on energy recycling, reducing energy consumption by 80% compared to traditional processes and cutting annual CO₂ emissions by 22,000 tons. This not only strengthens its competitiveness in high-energy-cost markets but also provides customers with TDI products with a lower carbon footprint.

In early 2026, the global TDI market experienced a concentrated contraction in supply. In January, global TDI plant shutdowns for maintenance totaled 860,000 tons, accounting for 24% of global total capacity. This included temporary shutdowns at Hanwha in South Korea and Wanhua's Xinjiang plant, combined with previous maintenance and abnormal fluctuations at major plants such as Covestro Shanghai and Wanhua Fujian, leading to a continuous widening of the global supply gap.

TDI market supply tightened. From January 12 to 22, Wanhua Chemical's TDI distributor channel price was set at 15,200 yuan per ton. Due to the ongoing shutdown of the Northwest plant, there was no supply from Northwest sources during this period. A major plant in Shanghai adjusted its TDI price to 14,400 yuan per ton, with tight supply and limited allocations.

In 2025, China's TDI exports reached a record high. Import and export data show that China's TDI exports hit a historic peak in 2025, with total annual exports reaching 556,500 tons and cumulative imports only 3,400 tons. In December, exports were 50,200 tons, with imports of 140 tons. In November, exports reached 56,500 tons, setting a record for monthly exports, while imports were 460 tons. China's TDI supply has extremely low dependence on foreign sources, with exports playing a dominant role.