TPU Market Intelligence Report – Recent Commodity Market Dynamics

I. Price Dynamics
- **Mainstream Price Range**: As of May 22, 2026, the national average price of TPU in China’s mainstream markets stands at RMB 17,160 per ton, down by RMB 290 per ton (a decline of 1.66%) from RMB 17,450 per ton on May 15.
- **Segment-Specific Prices**:
- TPU for film applications: RMB 13,300–13,500 per ton;
- TPU for mobile phone cases: RMB 12,600–12,800 per ton;
- TPU for footwear materials: RMB 12,500–12,700 per ton.

II. Supply and Demand Dynamics
- **Supply Side**:
- Domestic TPU production capacity continues to expand, reaching nearly 1.5 million tons per year in 2024. Future capacity additions will be concentrated primarily in the East China (Shandong, Jiangsu) and South China regions.
- Leading enterprises—including Wanhua Chemical, Huafeng Chemical, and Merit Medical Materials—are accelerating capacity expansion to meet market demand; secondary players such as Huafeng Superfiber and Zhejiang Huafeng are also actively expanding production to capture greater market share.
- Since the second half of 2025, TPU supply has been ample, but demand growth has decelerated, intensifying market competition.
- **Demand Side**:
- TPU is widely applied across footwear, films, hoses, automotive components, medical devices, and other sectors.
- The footwear industry remains the largest consumer of TPU, accounting for approximately 29% of total consumption; films, sealing materials, hoses, and automotive applications account for 20%, 17%, 15%, and 10%, respectively.
- From 2024 to 2028, downstream demand for TPU is projected to grow at an annual rate of ~4%, driven primarily by films and medical-grade flexible tubing.

III. Industry Developments
- **Policy Impact**:
- Regulatory policies in the medical sector explicitly support the domestic production of high-performance medical polymer materials. The National Medical Products Administration (NMPA)’s “Special Review Procedure for Innovative Medical Devices” designates TPU-based vascular interventional catheters as priority review items, boosting TPU demand in healthcare applications.
- Demand for TPU in new energy vehicle (NEV) lightweight components—including battery pack cushioning pads and wire harness sheaths—has risen significantly, increasing its share of total TPU consumption to 23.6% in 2026, up from 18.9% in 2024.
- **Corporate Strategies**:
- Global giants—including BASF and Covestro—continue expanding their presence in the Chinese market. For instance, Covestro is constructing the world’s largest TPU plant in Zhuhai, with a designed annual capacity of 20,000 tons.
- Domestic companies—including Wanhua Chemical and Merit Medical Materials—are intensifying strategic investments in polyurethane elastomer businesses to strengthen competitiveness.
- **Technological Advancements**:
- Lubrizol released the white paper “New Ecosystem of Physical Foaming Technology for TPU”, promoting the application of physical foaming technology in TPU midsoles for athletic footwear—enhancing both material performance and manufacturing efficiency.
- Enterprises are ramping up R&D efforts to develop high-performance TPU variants—including UV-resistant, flame-retardant, and biocompatible grades—while also exploring degradable and sustainable TPU solutions.

IV. Price Trend Analysis
- **Short-Term Outlook**:
- Recent TPU prices have exhibited weak volatility, primarily driven by supply-demand imbalances, falling raw material costs, and intensified competition.
- In the near term, TPU prices are expected to remain under pressure, though further declines are likely limited, as producers have responded via adjustments in operating rates and product portfolio optimization.
- **Long-Term Outlook**:
- With continuous expansion into new downstream applications and acceleration of domestic substitution initiatives, overall TPU demand in China is expected to sustain steady growth.
- High-end TPU products—including medical-grade and electronics-grade grades—will become focal points of corporate competition due to their high technical barriers and superior gross margins.
- China’s TPU market size is projected to reach USD 677.6 million in 2026, representing a year-on-year growth of 10.5%; the market is expected to continue expanding in subsequent years.

V. Future Outlook
- **Market Size**:
- Globally, the TPU market is forecast to grow from USD 3.0 billion in 2025 to USD 3.27 billion in 2026, reaching USD 6.45 billion by 2034—a compound annual growth rate (CAGR) of 8.9%.
- China’s TPU market is expected to reach USD 1.0 billion by 2026, primarily propelled by infrastructure investment and consumption upgrading.
- **Application Segments**:
- Footwear, automotive interiors, wire & cable, and building insulation will remain core application areas for TPU.
- Emerging sectors—including new energy vehicles, medical devices, and consumer electronics—will drive rapid demand growth and serve as key new growth engines.
- **Competitive Landscape**:
- Competition between domestic and international players is intensifying. Industry leaders are enhancing competitiveness through capacity expansion, technological innovation, and vertical integration.
- The low- to mid-end segment has entered a saturated “red ocean” phase characterized by overcapacity; conversely, the high-end segment—with its higher technical barriers and profitability—has become the primary battleground for competitive differentiation.