Analysis of Polytetrahydrofuran (PTMEG) Industry Development

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Analysis of Polytetrahydrofuran (PTMEG) Industry Development 1. Product Overview Polytetrahydrofuran (PTMEG) is a special polyether polyol produced through the polymerization of tetrahydrofuran (THF). It is a waxy solid at standard ambient temperature and turns into a viscous transparent liquid when heated. It has excellent flexibility, high elastic recovery, hydrolysis resistance, wear resistance, and low temperature performance. It is the core raw material of high-performance elastomers and special materials. It is widely used in textile spandex, high-end TPU, automotive parts, consumer electronics accessories, medical elastic materials and other fields. 2. Application 1. Spandex fiber: About 90% of domestic PTMEG is used to produce spandex fiber. About 72% of global PTMEG consumption is related to elastic fiber applications, especially spandex. The surge in demand for highly elastic fabrics such as sportswear and yoga wear directly drives demand for PTMEG. 2. Polyurethane elastomer (TPU/CPU): The market share of domestic PTMEG is less than 20%, and high-end applications are still monopolized by multinational companies such as BASF and Covestro. 3. Copolyetherester/amide (TPEE/PEBA): Used in high-end sports equipment and precision industrial components. 4. PTMEG 1800/2000 brand accounts for the largest proportion, followed by PTMEG 1000 brand. 5. Price level As of January 2026, the mainstream price of 1800 molecular weight PTMEG is 11,600 yuan/ton. 3. Market supply and demand 1. Market size The global PTMEG market size in 2026 will be approximately US$61.36 billion, and is expected to reach US$81.7 billion by 2035. 2. Production capacity and output In 2024, global PTMEG production will exceed 2.5 million tons. China accounts for approximately 71% of global PTMEG production. Domestic PTMEG production capacity is mainly concentrated in the eastern coastal areas. 3. Supply and demand situation Competition in the downstream spandex industry has intensified, and production capacity has been further concentrated towards the top. The average annual price of PTMEG for spandex is the lowest in the past 10 years, and most enterprises are under overall pressure and are in a state of loss. It is expected that the spandex industry's production capacity growth will slow down in 2026, but due to the large inventory, the industry's oversupply pattern will continue. 4. Industry profit level and industry chain profit distribution show obvious differentiation: Upstream (BDO/THF): Squeezed by raw material and environmental protection costs, profits fluctuate greatly, and integrated enterprises have advantages in the midstream (PTMEG): Production capacity is highly concentrated, but it faces upstream and downstream squeeze. Conventional products have meager profits, while high-end, special, and bio-based PTMEG are the main profit sources downstream (spandex/TPU): Competition in the spandex segment is fierce and profit margins are limited ； High-performance TPU has high technical barriers and huge profits. Profits tend to shift to downstream high value-added products. Bio-based PTMEG has a premium of 30%-100% compared to petroleum-based products. The output of bio-based PTMEG accounts for about 9% of the total output, compared with 4% five years ago. The non-grain bio-based PTMEG launched by domestic Ruixun Biomaterials (a subsidiary of Huafon Group) is made of corn cobs as raw materials and will be put into production in the second half of 2026. 5. Mainstream companies 1. BASF, Lycra, Mitsubishi Chemical, South Korea's PTG and DCC (Dalian Chemical) account for 70%-75% of global production capacity. 2. Xinjiang Tianye, a major domestic enterprise: It has the world's most complete and largest integrated industrial chain of "coal-carbide-BDO-THF-PTMEG-spandex". Huafeng Chemical: China's spandex leader, equipped with PTMEG production capacity, achieves self-sufficiency in core raw materials. BASF-Xinjiang Meike: The joint venture uses BASF's advanced technology to position itself in the mid-to-high end. Shanxi Sanwei etc.: Relying on coal chemical resources and supporting PTMEG production capacity, it is an important regional supplier. It competes on cost and flexibility, and faces pressures from product upgrades and environmental protection. 6. Industry production technology development trends 1. Mainstream process route PTMEG production process is divided into acetic anhydride method and fluorosulfonic acid method (FSA method). The acetic anhydride method has gradually become a mainstream process due to its low environmental pressure and low BDO consumption. By optimizing the catalyst system, domestic enterprises have reduced the energy consumption per ton of the acetic anhydride process and extended the life of the catalyst. In contrast, the FSA method is gradually being eliminated by leading companies due to serious equipment corrosion and large amounts of wastewater. 2. Bio-based PTMEG The industrialization path of bio-based PTMEG is: Biomass → Bio-based BDO → Bio-based THF → Bio-based PTMEG. BASF has launched commercialized bio-based PTMEG. Global bio-based PTMEG production accounts for approximately 9% of total production. 7. Industry development trends and risk warnings 1. The average proportion of spandex added to textiles has moved from 5% to 8-10%, and the usage of sportswear and functional fabrics continues to grow. . 2. Rapid expansion in non-fiber fields. The application proportion of PTMEG in polyurethane elastomer (TPU) accounts for about 25-30% and continues to increase. Emerging industries such as new energy vehicles and environmentally friendly materials provide new growth points for PTMEG. 3. Bio-based substitution is accelerated. The production of bio-based PTMEG continues to grow, and green substitution has become a definite direction. Bio-based PTMEG has huge application potential in fields such as textiles, elastomers, and automobile manufacturing.