“China Rigid Polyurethane Foam Industry Forum 2025”, hosted by China Polyurethane Products Committee of China Plastics Processing Industry Association (CPPIA), was held in Xianyang during April 23 and April 25. As an important annual event in polyurethane industry, the forum attracted 250+ experts, entrepreneurs and research scholars across the country to jointly discuss technological innovation, policies and regulations, and development trends in the rigid polyurethane foam industry.
As a professional polyurethane market intelligence platform in China, PUdaily was honored to be invited to participate in the forum and to share the report titled <Review and Development of China’s Rigid Polyurethane Foam Industry Amid Global Trade Turbulence>. Claire Yang, senior market analyst from PUdaily, presented the report.
She provided an overview of the global polyurethane market and focused on China’s polyurethane supply-demand dynamics over the past five years, analyzed the market fluctuations caused by major global events and the continuously changing trade environment, as well as the profound impact these changes have had on China’s rigid polyurethane foam market.
Global Polyurethane Market: How International Political, Economic and Trade Dynamics Drive Market Fluctuations
In terms of supply, global events such as the COVID-19 pandemic and geopolitical tensions in Europe have caused major disruptions to polyurethane supply chain in the U.S. and Europe. These challenges also include force majeure and soaring energy costs in Europe, all of which have led to reduced operating rates. As a result, downstream manufacturers in Europe have slowed down their facility expansion, and some are even relocating production abroad. Meanwhile, production capacities in Asia-Pacific region continue to grow, with improvements in both supply stability and supply chain efficiency. However, the U.S. pending decisions on imposing sweeping new tariffs have created more uncertainties and cautious mood for the global polyurethane market and Chinese exporters.
In terms of demand, the volatile international environment, regional supply chain relocation, and consumption downgrade coexist with a rising demand for healthy and eco-friendly products. These factors collectively present new business opportunities for the polyurethane industry both domestically and internationally.
Building Insulation: High Quality and Sustainable Development are the Main Themes of Industry Growth
Building insulation is the second-largest downstream sector for rigid polyurethane foam in China, next only to the home appliance sector. China’s polyurethane demand in the building insulation sector in 2024 totaled around 500,000 tonnes, down slightly from the previous year, according to PUdaily. In the insulated panel segment, China will revise four national standards related to cold storage construction in 2025 and strengthen regulatory oversight during the construction process to curb risks associated with quality and safety hazards caused by cost reductions.
In the spraying foam segment, one of the key priorities for 2025 is the complete phase-out of the use of HCFC-141b and the adoption of alternative blowing agent solutions. Building insulation, as a relatively mature and stable industry, is poised for growth with “high quality” and “sustainable development” as the main themes.
Increasingly Stringent Environmental and Low-Carbon Regulations: Uphold Technological Innovation, Deepen International Cooperation, and Build a Healthy Market
On April 23, China unveiled a plan on fulfilling the Montreal Protocol on Substances that Deplete the Ozone Layer during the 2025-2030 period to comprehensively strengthen its management of ozone-depleting substances and hydrofluorocarbons (HFCs) in order to address ozone layer depletion and climate change.
On April 24, Li Jianbo, Deputy Secretary-General of China Polyurethane Industry Association, made the following proposals at the event in Xianyang:
“Global environmental and low-carbon regulations are becoming increasingly stringent. Pressures from the Montreal Protocol and the introduction of regulatory policies in the EU and South Korea are accelerating business transformation. The future of our industry depends on the joint efforts of every practitioner and requires close cooperation across the entire industry chain. Here, I would like to share several suggestions on industry development.
First, uphold technological innovation to cultivate new productive forces. New productive forces represent not only the core of technologies but also a comprehensive upgrade in production models, management approaches and industry ecology. We must focus on intelligent, green and high-end development to reshape the industry. Enterprises and universities should co-build joint laboratories to shorten the cycle from lab technology to industrial application. The collaboration between upstream and downstream enterprises on key challenges is encouraged. We should jointly promote the localization of critical equipment to reduce dependence on imported technologies.
Second, deepen international cooperation to enhance our voice in global markets. We must benchmark against international advanced standards, strengthen standardization efforts, and promote the alignment of domestic and international technology standards, thereby creating competitive advantages within the global green supply chain. Expanding the use of bio-based materials and improving carbon accounting standards will ensure that every foam product embodies an equal low-carbon goal. Meanwhile, attention must be paid to changes in international trade rules and cultivating risk awareness to safeguard the legitimate rights and interests of enterprises.
Third, improve self-regulation to build a healthy market. Industry self-regulation is vital for healthy development. We should promote fair competition, oppose unfair practices, and maintain sound market order. Strengthening industry self-regulation will improve the overall image and reputation of our sector, boost competitiveness, and lay a solid foundation for sustainable development. Let us start from this forum to cooperate on exploring opportunities and making breakthroughs amid industry transformation, moving towards a green, innovative and win-win future for the rigid polyurethane foam industry!”
