This Week's MDI Market Narrowly Declines (8.18-8.22) in China

August 22, News

According to the commodity market analysis system, from August 18 to 22, the Chinese polymeric MDI market experienced a slight decline, with the average price at the beginning of the week being 15,683 CNY/ton and at the end of the week 15,633 CNY/ton, resulting in a price decrease of 0.32% during the period, and a year-on-year decrease of 9.72%. During the week, factory operations remained stable, traders adjusted prices according to market conditions, and there were fewer inquiries in the market, leading to a quiet trading atmosphere.

Supply side, Tosoh Anan's 80,000 tons/year MDI plant began maintenance on July 23, with an expected duration of around 35 days.

Cost Perspective: This week, pure benzene experienced slight fluctuations. As the end of the month approaches, downstream buyers are nearing the conclusion of their purchasing activities, putting increased selling pressure on intermediaries and pushing transaction prices lower. Overall, rising import volumes, coupled with the commissioning of new production capacities, have been met with weak demand. Under these fundamentally bearish conditions, the pure benzene market lacks upward momentum. Meanwhile, aniline prices remain stable for now.

Demand side, downstream demand in China is moderate, with a quiet trading atmosphere, and transactions are mainly small orders.

For the future market prediction, as the end of the month approaches, major manufacturers in China are about to announce their settlement prices. The market is awaiting more information for guidance, and it is expected that in the short term, the polymeric MDI market in China will experience a narrow fluctuation.