This Week, the Chinese Polymeric MDI Market Showed a Strong Increase (12.1-12.5)

December 05 news

According to the commodity market analysis system, from December 1st to 5th, the market price of Chinese polymeric MDI showed a strong increase. The average price at the beginning of the week was 14,533 CNY/ton, and by the end of the week, it had risen to 14,666 CNY/ton, with a weekly increase of 0.92%, and a year-on-year decrease of 19.19%. During the week, frequent news about overseas major manufacturers' maintenance and price hikes, as well as new maintenance schedules from major Chinese manufacturers, led to an enhanced expectation of tighter supply, boosting market confidence. Downstream demand was mainly for essential needs, with cautious market entry, resulting in a higher number of small-volume transactions, and the polymeric MDI market experienced a slight upward trend.

Supply side: Wanhua Ningbo started maintenance on November 15, with an expected duration of around 55 days. BASF Chongqing and Covestro Shanghai both have maintenance plans for December. Huntsman's 280,000 tons/year MDI plant in the Netherlands unexpectedly shut down in late November and is expected to remain closed until mid-December, with the remaining production lines operating at low capacity. Saudi Arabia's 400,000 tons/year MDI plant is scheduled for a shutdown for maintenance in January 2026.

Cost Perspective: This week, the price of pure benzene has been fluctuating within a narrow range. Major ports in East China are entering a phase of continuous inventory accumulation. Additionally, as the weather turns colder, end-user orders remain insufficient, and downstream production activities show little enthusiasm, continuing to put downward pressure on price recovery throughout the industrial chain. Amidst the tug-of-war between bullish and bearish forces, the pure benzene market is expected to continue trading within a range. This week, the aniline market experienced a pullback from its earlier high levels. On December 5, the price of aniline stood at 7,970 CNY per ton, compared to 8,145 CNY per ton on December 1, representing a price decrease of 2.15% over the period.

Demand side, downstream demand enters the market as needed, with an increased resistance to high-priced supplies, making it difficult to increase transaction volumes.

Looking ahead, the current polymeric MDI market is experiencing tightening supply, and market sentiment remains cautious. We are closely monitoring transaction trends in the market. It is expected that, in the short term, the polymeric MDI market will continue to perform strongly.