This week, the TDI market in China showed a strong upward trend (11.10-11.14)

November 14, News

According to the commodity market analysis system, the TDI market in the East China region continued to rise this week. As of November 14, the average market price in the East China region was 14,233 CNY/ton, while the average price on November 10 was 13,866 CNY/ton, with a weekly price increase of 2.64%, and a year-on-year increase of 10.77%.

This week, the TDI market in China has become increasingly clear, with a significant price increase. During the week, a major factory in northern China set a fixed price of 14,200 CNY/ton for TDI distribution channels in mid-month, with a 20% supply; a major factory in Shanghai raised the TDI price to 14,400 CNY/ton, with limited supply; and Factory C in Shanghai saw strong TDI orders, tight inventory, and closed sales. Major factories continuously offered discounted supplies and announced price increases, leading to an expected tightening of supply. Traders followed the upward trend, were reluctant to sell at low prices, and the TDI market showed a strong upward trend.

Supply side: The TDI unit of Wanhua in Fujian is operating at reduced load. Hanwha's 150,000 tons/year TDI unit in South Korea was shut down for maintenance on November 3 and is expected to resume operations around November 20. Covestro in Shanghai has a maintenance plan scheduled for November.

Cost aspect: The toluene market has seen a slight increase. A modest recovery in the crude oil market has improved the sentiment in the spot market. Overall, the market sentiment is decent, with factories showing a strong intention to maintain prices. Downstream buyers are restocking according to their needs, and with the rise in crude oil prices, the toluene market is showing a stable and slightly bullish trend.

Looking ahead, the TDI data analyst believes that suppliers in the current TDI market are firmly holding their prices, while traders are becoming more cautious about offering lower quotes. As a result, the pace of filling available supplies has slowed down. Consequently, the analyst expects the TDI market to remain relatively strong in the near term, urging close monitoring of future supply-and-demand dynamics.