Fundamentals Weak, TDI Market in China Declines in October

October 29th, news

According to the commodity market analysis system, the TDI market in East China showed a fluctuating decline in October, maintaining a weak trend. At the beginning of the month, the average price of TDI was 13,800 CNY/ton, and on October 29, the TDI price was 13,500 CNY/ton, with a price decrease of 2.17% within the month, and a year-on-year increase of 3.05%.

In October, the TDI market in China remained weak. During the month, while suppliers maintained their prices, they also showed no reduction in their willingness to sell. Traders adjusted their prices according to the market, and to stimulate sales, the transaction price slightly decreased. There was little news, and overall production remained stable, with a rapid replenishment of supplies. Under the condition of strong supply and weak demand, TDI market transactions were average, and the price level fluctuated downward.

Supply side: The TDI unit of Wanhua in Fujian, China is operating at reduced capacity. Other units are maintaining stable operation.

Cost perspective: In October, the supply and demand for toluene in the Chinese market was bearish. The demand from downstream chemical and blending oil industries remained stable, with purchases mainly driven by necessity. Prices in East China declined, and the enthusiasm of downstream buyers to enter the market was weak. Additionally, influenced by the weakening crude oil prices, toluene prices showed a fluctuating downward trend.

Looking ahead, TDI data analysts believe that the overall market supply in October remains ample. While Shanghai's factory is scheduled for maintenance in November, this is expected to have only a limited impact on the broader supply side. Meanwhile, weakening demand expectations suggest that the TDI market will likely continue its current weak performance in the near term.