This Week's TDI Market Stagnates and Declines (8.18-8.22)

August 22, News

According to the commodity market analysis system, this week the TDI market in the East China region saw a slight decline. As of August 22, the average market price in the East China region was 15,400 CNY/ton, while on August 18, the average price was 15,666 CNY/ton, with a weekly price decrease of 1.7%, and a year-on-year increase of 9.22%.

This week, the TDI market in China continued to decline. Within the week, the newly constructed TDI Phase II facility (360,000 tons/year) at Wanhua's Fujian Industrial Park has been commissioned and has produced qualified products. The force majeure at the German TDI plant has lasted longer than expected, and a major factory in Shanghai has once again reduced its supply to the Chinese market by 10% this month to support the European market. Overseas demand remains strong. Factories are controlling inventory to maintain prices, while traders are adjusting their prices according to the market. Downstream buyers are showing a clear resistance to high prices, and under the tug-of-war between supply and demand, the transaction focus of TDI has shifted downward.

Supply side: Yantai Wanhua's TDI plant began a shutdown for maintenance on August 19, with an expected duration of around 40 days; Gansu Yinguang also stopped for maintenance on July 27.

Cost aspect: The toluene market in China saw a slight decline, with downstream sectors purchasing according to demand. Overall, both supply and demand were weak, creating a quiet market atmosphere.

Looking ahead, TDI data analysts believe the TDI market will continue to face a tight supply situation. While supply-side factors remain positive, weak downstream demand is expected to weigh on prices in the near term. Traders are advised to closely monitor shifts in market supply and demand dynamics, as well as any emerging industry news.