This Week Polymeric MDI Slightly Decreased (9.1-9.5) in China

September 05, News

According to the commodity market analysis system, from September 1 to 5, the Chinese polymeric MDI market saw a slight decline, with the average price at the beginning of the week being 15,250 CNY/ton and at the end of the week 15,083 CNY/ton, resulting in a price decrease of 1.09% within the period, and a year-on-year decrease of 15.58%. During the week, factory operations remained stable, but downstream market participation was low, leading to limited transactions.

Supply side, the 80,000 tons/year MDI plant of Tosoh An in China was restarted on August 26, and the plant has returned to normal operation.

Cost aspect, this week, the pure benzene market showed a fluctuating trend. Recently, the destocking of pure benzene at ports has alleviated import pressure. With maintenance in China and an increase in downstream demand, the supply and demand situation is expected to seasonally improve in the third quarter, and the price of aniline remains stable for now.

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

Market forecast: Currently, production by suppliers in China is stable, and the supply is replenishing quickly. However, distributors are experiencing slow sales, leading to increased inventory pressure. It is expected that the polymeric MDI market in China will maintain a weak trend in the short term.