Demand Sluggish, TDI Market Stalls at High Levels

April 15th, news:

In the first half of April, the TDI market in East China first rose and then fell, with the price increase being erased. As of April 14, the average market price in East China was 20,100 CNY/ton, while the average price on April 1 was 20,200 CNY/ton, a decrease of 0.5% within the period, but an increase of 81.63% year-on-year. Due to high prices, downstream resistance was evident, demand was weak, and market transaction prices showed some flexibility.

Supply and Demand: Plants operated at medium to high load levels, such as those of China’s Wanhua. Market inventories remain low. Domestic demand in China is moderate, while overseas demand is relatively strong.

On the cost side: The toluene market is fluctuating along with crude oil price movements. Downstream buyers are replenishing stocks as needed, and demand remains moderate, causing toluene prices to oscillate and decline.

Technical analysis

From the spot market analysis system, it can be seen that the current TDI price is entangled with the 10-day and 20-day moving averages, indicating that the momentum for further price increases in the future is insufficient, and the Chinese market is entering a consolidation phase.

According to the five-level position of SpotCom, the current formic acid price in China is at a high level, with limited room for further increase.

Overall, the TDI market in China is currently characterized by ample supply, weak demand, export support, and low inventory levels, with these four factors interacting to result in relatively small price fluctuations. Considering the spot market, the 10-day moving average and the 20-day moving average have converged, indicating that a market turning point has been reached. With prices at a high level, there is limited room for further increases, and TDI prices may stabilize or slightly weaken.