This week, the TDI market in China saw a slight increase (2.2-2.6)

February 6th, News

According to the commodity market analysis system, the TDI market in East China slightly increased this week. As of February 6, the average market price in East China was 14,500 CNY/ton, and on February 2, the average price was 14,333 CNY/ton, with a weekly price increase of 1.16%, and a year-on-year decrease of 0.68%.

This week, the TDI market in China maintained an upward trend. As of this Friday, the quoted price for domestically produced TDI in East China was between 14,200 and 14,400 CNY per ton; the quoted price for Shanghai goods was around 14,500 to 14,600 CNY per ton. During the week, BASF announced that TDI prices in the Asia-Pacific region (excluding mainland China) and the MEAF region would increase by 200 USD per ton. Coupled with some unstable operations of facilities, the delay in supply replenishment boosted market confidence. Suppliers held firm on their prices, pushing them up, and intermediaries followed the market, with fewer low-end quotes. In terms of demand, as the Spring Festival approaches, downstream stockpiling is nearing its end, and transaction volumes have been moderate.

Supply side: The 360,000 tons/year TDI unit of Wanhua in Fujian, China, has been temporarily shut down; a 50,000 tons/year TDI unit in South Korea has been shut down for maintenance, with an expected duration of two weeks.

Cost aspect: The trading atmosphere for toluene in China has become weaker, with prices falling from high levels due to insufficient buying interest.

For the future market analysis, TDI data analysts believe that with the Chinese New Year holiday approaching, the market will continue to consolidate and operate as it is currently. With support from the supply side, it is expected that the TDI market in China will remain in a stalemate and consolidation phase in the short term.