This Week, the Chinese Polymeric MDI Market Showed a Weak Decline (4.20-4.24)

April 24 (News)

According to the commodity market analysis system, from April 20 to 24, the price of Chinese polymeric MDI fell weakly. The average price at the beginning of the week was 19,600 CNY per ton, and on April 24, it was 19,066 CNY per ton, a decrease of 2.72% within the week, and an increase of 27.54% year-on-year. During the week, there was a tight supply from major manufacturers, and the export market was good. Downstream demand entered the market, with small orders predominating, and traders lowered prices to sell goods.

Supply side: On April 20, BASF Shanghai will shut down some of its MDI units for maintenance, with the shutdown lasting approximately 1 to 2 weeks. The Jinhu MDI unit in South Korea (200,000 tons/year) began its routine maintenance plan in early April, scheduled to last about one month.

Cost Perspective: During the week, pure benzene prices fluctuated and rose, with downstream buyers entering the market at lower prices. Pure benzene operating rates remained low, and maintenance activities further intensified, leading to reduced prices and increased buying interest, thereby boosting demand. However, as factories raised their prices, demand was once again dampened. Looking ahead in the near term, the situation in the Strait of Hormuz remains uncertain, suggesting that the pure benzene market will likely remain strong in the short term.

Demand Side: Downstream demand is weak, with fewer inquiries, and traders are under pressure to move inventory, leading to a price reduction.

Looking ahead, the polymeric MDI market is currently under downward pressure, but cost-side rigidity continues to provide support. We expect the polymeric MDI market to experience narrow fluctuations in the short term.