November TDI Market Rises Sharply and Then Falls

November 27 news

According to the commodity market analysis system, the TDI market in East China first rose and then fell in November. At the beginning of the month, the average price of TDI was 13,500 CNY/ton, and on November 26, the TDI price was 14,066 CNY/ton, with a price increase of 4.2% within the month, and a year-on-year increase of 11.2%.

In November, the TDI market gradually strengthened. At the beginning of the month, a factory in the north suspended orders due to tight supply. A major factory in Shanghai raised its price to 14,200 CNY/ton. Frequent news of supply tightening supported the sentiment of market participants. Subsequently, the TDI market became increasingly clear, with price increases intensifying. In mid-month, a major factory in the north offered TDI at a fixed price of 14,200 CNY/ton with a 20% supply discount; another major factory in Shanghai raised its TDI price to 14,400 CNY/ton with limited supply. Factory C in Shanghai saw strong TDI orders and tight inventory, leading to a halt in new orders. Continuous news of major factories offering discounted supplies and price hikes indicated an expected tightening of supply. Traders followed the price increases, holding back from selling at low prices, which led to a strong upward trend in the TDI market. By the end of the month, prices slightly declined as the high prices slowed down market transactions, and traders lowered prices to stimulate sales.

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 scheduled for November.

Cost aspect: The toluene market in China saw a significant increase in November. Thanks to the recovery of the crude oil market, the spot market sentiment improved. Overall, there was limited change in supply and demand, with stable supply and generally positive market sentiment, and factories had a strong intention to maintain prices. Demand remained mainly driven by essential needs, with restocking primarily based on requirements.

Looking ahead, TDI data analysts believe that the current TDI market atmosphere is relatively subdued. Suppliers remain determined to hold their prices, while traders are cautious about entering the market. Under the ongoing interplay between supply and demand, the TDI market is expected to fluctuate within a narrow range in the short term.