2-Amino-3-(3,7-dimethyl-2,6-dioxo-2,3,6,7-tetrahydro-1H-purin-8-yl)propanoic acid

Thermoplastic Polyurethane (TPU) Recent Market Dynamics Intelligence, Analysis, and Forecast

I. Market Dynamics Intelligence
(A) Price Dynamics
1. Recent Price Range: In July 2026, the mainstream price for film-grade TPU stood at RMB 13,300–13,500 per ton; for smartphone case-grade TPU, it was RMB 12,600–12,800 per ton; and for footwear-grade TPU, it ranged from RMB 12,500–12,700 per ton.
2. Price Trend: Based on 2025 data, TPU market prices in July declined by 12.5% year-on-year versus 2024. The average monthly price from January to July 2025 remained below those of both 2024 and 2023, with a continuous downward trend beginning in March. During 2021–2022, premium-grade TPU prices peaked at approximately RMB 40,000 per ton, falling to RMB 25,000–30,000 per ton by end-2022. Prices continued declining through 2023–2024, and the 2025 average monthly price fell below RMB 15,000 per ton.

(B) Supply-Demand Dynamics
1. Supply Situation
- Capacity and Output: In 2024, China’s TPU capacity reached 1.5 million tons/year, with output rising to 830,000 tons. Approximately 35 domestic TPU producers operate, with relatively dispersed capacity distribution; the top five producers—Wanhua Chemical, Huafeng Chemical, Merit Medical Materials, YinoWei, and Baoding Bangtai—collectively account for 50% of total capacity. Over the past five years, China’s TPU industry has undergone rapid capacity expansion, yet operating rates remain modest. From 2019 to 2024, China’s TPU capacity and output registered compound annual growth rates (CAGRs) of 10.5% and 12.2%, respectively.
- New Capacity Additions: In 2024, new capacity included BASF’s 32,000 tons/year facility (commissioned in June) and Wanhua Chemical’s 50,000 tons/year plant (mechanical completion achieved in November). Internationally, BASF’s second TPU production line at its Zhanjiang base commenced operations in January 2024; Covestro launched construction of its largest-ever TPU plant in Zhuhai in September 2024, scheduled for full commissioning by 2033, with a maximum designed annual capacity of up to 120,000 tons.
2. Demand Situation
- Consumption Volume: China’s TPU consumption volume rose to 720,000 tons in 2024, representing an 8.1% year-on-year increase. Footwear remains the largest end-use segment, accounting for 29% of total consumption; films, sealing materials, hoses, and automotive applications accounted for 20%, 17%, 15%, and 10%, respectively.
- Application Areas: TPU is widely used in footwear, films, hoses, adhesives, electronics & electrical components, cables, automotive parts, modified overmolding, and medical devices. Notably, demand for TPU films in automotive applications is growing steadily; expandable TPU is gaining popularity in high-end athletic footwear; breakthroughs in automotive TPU film technology have led to increasing adoption volumes year-on-year; TPU membranes find broad application in textiles and inflatable products; TPU serves as sealing rings in the automotive industry, hydraulic/pneumatic systems, food processing, and medical equipment; in healthcare, TPU-based tracheal tubes, catheters, and infusion tubing exhibit excellent blood compatibility.

(C) Industry Developments
1. Corporate Strategies: Leading polyurethane elastomer enterprises continue intensifying strategic moves. Global giants—including BASF and Covestro—are expanding their presence in the Chinese market, while domestic leaders such as Wanhua Chemical and Merit Medical Materials are also accelerating business development in polyurethane elastomers.
2. Patent Activity: On July 14, 2026, Shandong YinoWei Polyurethane Co., Ltd. was granted a patent titled “High-Damping Polyurethane Pad and Preparation Method Thereof.” This high-damping polyurethane pad—composed of Component A and Component B—delivers balanced performance including high damping capacity, superior dynamic properties, excellent aging resistance, and low-temperature adaptability, all achieved via a simple, cost-effective manufacturing process.

II. Analysis and Assessment
(A) Reasons for Continued Price Decline
1. Falling Raw Material Prices: MDI and BDO—the two primary raw materials for TPU—experienced sharp price hikes during 2021–2022 due to global supply-chain disruptions, surging energy costs, and geopolitical tensions, pushing TPU prices upward. However, since mid-2022, falling raw material prices have contributed significantly to the subsequent cooling of TPU market pricing.
2. Overcapacity: Rapid capacity expansion across China’s TPU sector over recent years has outpaced demand growth, resulting in moderate-to-low utilization rates. Estimated capacity utilization in 2024 stood at approximately 65%. Given that this overcapacity situation is unlikely to be fundamentally resolved in the near term, intense competition persists, prompting manufacturers to slash prices to capture market share.
3. Intensified Market Competition: Domestic producers continue ramping up investments, while international players further penetrate the Chinese market—intensifying competitive pressure. Amid such industry-wide “overcompetition,” TPU prices continue trending downward.

(B) Drivers of Demand Growth
1. Stable Demand from Traditional Sectors: Although China is no longer the world’s largest footwear producer, TPU continues displacing other elastomers—such as ethylene-vinyl acetate copolymer (EVA) and polyvinyl chloride (PVC)—in footwear manufacturing, sustaining steady growth in TPU consumption.
2. Emerging Application Demand: Resurgent end-user demand in new-energy vehicles, consumer electronics, and premium apparel—and the emergence of novel applications including melt-spun spandex, paint-protection films (PPFs), and 3D printing—are generating fresh growth impetus for the TPU market. For instance, demand for TPU bonding materials in automobile manufacturing is rising in tandem with rapid expansion of the new-energy vehicle market.

III. Forecast
(A) Price Outlook
In the short term, TPU prices are expected to remain range-bound at low levels. Although fluctuations in raw material costs and shifts in market demand may exert minor influence on pricing, the persistence of structural overcapacity renders a substantial price rebound unlikely. Nevertheless, ongoing technological advancements and cost optimization efforts by producers may allow for modest price adjustments within a ±3% band.

(B) Supply-Demand Outlook
1. Supply Side: TPU supply in China will remain abundant over the coming years. With continued capacity expansions by international majors and sustained domestic investment, newly commissioned facilities will progressively enter the market, reinforcing a loose supply environment.
2. Demand Side: Downstream TPU consumption growth is projected to remain relatively stable, with an estimated compound annual growth rate (CAGR) of ~4% from 2024 to 2028—primarily driven by films and medical tubing. Specifically, demand for TPU films in outdoor sports equipment is forecast to grow at ~8% annually; meanwhile, rising healthcare standards are expected to drive ~6% annual growth in TPU demand for medical tubing.