This Week, the Aggregated MDI Market Experiences High-Range Fluctuations (April 6–10)

April 10 news

According to the commodity market analysis system, from April 6 to 10, China's polymer MDI market prices continued to rise. The average price at the beginning of the week was 20,066 CNY/ton, and by April 10, the average price had risen to 20,866 CNY/ton, representing a weekly increase of 3.99% and a year-on-year increase of 33.33%. During the week, major manufacturers raised their suggested retail prices while offering discounts. Imports have declined, leading to tighter market supply. Traders have raised their quoted prices, making it increasingly difficult to find low-priced supplies. Downstream buyers with immediate needs entered the market, and small-volume transactions dominated the deals.

Supply side: All MDI plants in China are operating normally. The 300,000 tons/year MDI plant of BASF in Shanghai and the 300,000 tons/year MDI plant of Huntsman in Shanghai both have maintenance plans scheduled for May.

Cost Perspective: The geopolitical situation in the Middle East remains volatile, causing crude oil prices to initially fall and then rebound. The Strait of Hormuz has been closed once again, and overseas pure benzene supply facilities have reduced their operating rates. As a result, import volumes of pure benzene are expected to decline significantly in April and May. Under the influence of crude oil prices, pure benzene prices are likely to experience strong but volatile fluctuations.

Demand Side: Downstream demand is entering the market as needed. Some downstream buyers are still relatively accepting of higher-priced supplies, and their expectations for future price increases are strengthening.

Looking ahead, the current polymeric MDI market is strongly supported by both cost and supply factors, and it is expected that polymeric MDI prices will find it easier to rise than to fall in the short term.