This Week TDI Market Stopped Falling and Rose (9.8-9.12)

September 12, News

According to the commodity market analysis system, the TDI market in East China stopped falling and rose this week. As of September 12, the average market price in East China was 13,866 CNY/ton, while on September 8, it was 13,666 CNY/ton, with a weekly price increase of 1.46%, and a year-on-year increase of 1.22%.

This week, the TDI market in China stopped falling and rebounded. During the week, there were frequent positive news from suppliers, with a major factory in the north supplying at 20% of capacity, leading to tight supply. A major factory in Shanghai raised its guidance price to 14,200 CNY per ton, with tight inventory. The news boosted the confidence of traders, and middlemen raised their quotations. Downstream demand was mainly for essential needs, with low enthusiasm for entering the market. As prices rose, transactions were sparse.

Supply side: The TDI unit of Yantai Wanhua in China began a shutdown for maintenance on August 19, with an expected duration of around 40 days. Other units are operating steadily.

Cost aspect: The toluene market in China is generally weak, with moderate trading activity. There is limited guidance from news, and a strong sentiment of wait-and-see prevails.

Looking ahead, the TDI data analyst believes that while the current TDI market is seeing strong price-support sentiment from suppliers, demand-side support remains limited. Market participants will need to closely monitor shifts in supply, demand, and key market developments. In the short term, downstream buyers are not showing much enthusiasm to enter the market, suggesting that the TDI market is likely to consolidate as it absorbs the recent price increase.