This Week's TDI Market Stabilizes (11.17-11.21)

November 21st, according to reports

According to the commodity market analysis system, the TDI market in the East China region maintained stable operations this week. As of November 21, the average market price in the East China region was 14,233 CNY/ton, and on November 17, the average price was also 14,233 CNY/ton, with a weekly change rate of 0%, and a year-on-year increase of 12.52%.

This week, the TDI market experienced a rebound followed by stabilization. As of this Friday, domestic TDI prices in East China ranged from 13,500 to 13,900 CNY per ton, while Shanghai-based offers hovered around 14,000 to 14,300 CNY per ton. Throughout the week, suppliers maintained their price-support stance, though market transaction speeds slowed down. To encourage sales, traders slightly lowered deal prices within a narrow range. Meanwhile, downstream buyers, driven by immediate demand, remained cautious, leading to a generally wait-and-see market atmosphere. Amid this delicate balance between supply and demand, the TDI market continued to hover steadily amid ongoing negotiations.

Supply side: The TDI unit of Wanhua in Fujian is operating at reduced capacity. Hanwha's 150,000 tons/year TDI unit in South Korea was shut down for maintenance on November 3 and is expected to restart around November 25. Covestro in Shanghai has a maintenance plan for November.

Cost perspective: The toluene market has seen a slight increase. A modest recovery in the crude oil market has led to an improvement in the spot market atmosphere. Overall, the market sentiment is decent, with factories showing a strong determination to hold prices. Downstream buyers are replenishing their inventories as needed, and with the rise in crude oil prices, the toluene market is expected to maintain a steady and slightly stronger trend.

Looking ahead, TDI data analysts believe that the northern region's major TDI producer raised its ex-factory price for distribution channels to 14,400 CNY/ton in late November. This news is expected to boost market confidence, leading to a moderately bullish outlook for the TDI market in the near term.