November MDI Market Gradually Strengthens

November 27th, according to news from China

According to the commodity market analysis system, the Chinese polymeric MDI market showed a stepwise increase in November. From November 1 to 27, the price of polymeric MDI in China rose from 14,300 CNY/ton to 14,533 CNY/ton, with a monthly price increase of 1.63%, and a year-on-year price decrease of 19.93%.

In early November, the polymeric MDI market in China was consolidating, with little news. Downstream buyers entered the market as needed, and the trading atmosphere was quiet. Traders' sales were average, waiting for guidance from news, and they operated cautiously.

In late November, major manufacturers in China have increased maintenance, leading to a tighter supply expectation. Factories are pushing for price increases, with Shanghai plants setting the price of polymeric MDI for dealers at 14,600 CNY/ton and a fixed price of 14,800 CNY/ton for one-off customers. Traders' confidence has strengthened, and prices have followed the upward trend. There has been an increase in inquiries within the market, and downstream buyers are purchasing according to their needs. Overall, the transaction volume is moderate, and there has been a slight decline in prices at the end of the month.

Supply side: The Wanhua Ningbo plant began maintenance on November 15, with an expected duration of around 55 days. BASF's Chongqing facility and Covestro's Shanghai facility both have scheduled maintenance in December. Huntsman's 280,000-ton annual MDI unit in the Netherlands unexpectedly shut down in late November, with an estimated restart in mid-December.

On the cost side, the pure benzene market experienced low-level fluctuations in November. Overall supply remained ample; downstream demand was primarily driven by rigid procurement, and some loss-making products reduced production to maintain prices, resulting in limited overall support from the demand side. The aniline market showed firm upward trends in November. On November 1, the price of aniline stood at 7,995 CNY per ton, rising to 8,045 CNY per ton by November 27—a gain of 1.88% over the period.

On the demand side, demand is relatively stable, with downstream essential demand entering the market and purchasing according to needs.

Looking ahead, with Hengsmei’s 280,000-ton facility unexpectedly shutting down at the end of the month and Saudi Arabia’s 400,000-ton plant scheduled for maintenance in January, the supply side is expected to tighten further, boosting upward momentum in the short-term MDI polymer market.