This week, the TDI market in China is operating at a high level (8.4-8.8)

August 8th News

According to the commodity market analysis system, the TDI market in East China operated with a narrow range this week. As of August 8, the average market price in East China was 16,666 CNY/ton, the same as the average price on August 4, with no change during the week, and a year-on-year increase of 18.2%.

This week, the TDI market in China operated at a high level with a somewhat tangled market atmosphere. On one hand, there is a continuously tight supply situation. On the other hand, high prices have led to low enthusiasm from downstream buyers, with only rigid demand providing support. During the week, a major TDI plant in Hebei plans to temporarily shut down for maintenance in mid-August, lasting about 7 days. A major plant in Shanghai, due to tight supply, is not accepting new orders. Suppliers' willingness to hold firm on prices remains strong, while downstream buyers are cautious, resulting in a lack of substantial transactions. Under the tug-of-war between supply and demand, the TDI market in China continues to operate at a high level.

Supply side: Xinjiang Julishi halted production for maintenance on July 16, lasting approximately 35 days; Gansu Yinguang also stopped production for maintenance on July 27, lasting about 10-15 days. Hebei Cangzhou Dahua plans a temporary shutdown for maintenance in mid-August, lasting around 7 days.

Cost aspect: The price of toluene decreased, with the average price at the beginning of the week being 5,580 CNY/ton and at the end of the week being 5,560 CNY/ton. The weekly price decrease was 0.35%. After experiencing a rise due to supply-side maintenance, the toluene market faced a slight decline this week as demand weakened.

According to TDI data analysts, the market analysis suggests that the TDI market will continue to maintain a tight supply situation. Supported by overseas orders, it is expected that the short-term TDI market will remain at high levels. Close attention should be paid to changes in market supply-demand and news developments.