This Week, the Domestic Polymeric MDI Market Showed a Weak Decline (5.6-5.9)

May 9th News

According to the commodity market analysis system, from May 6 to 9, China’s polymeric MDI market prices showed a weak downward trend. The average price at the beginning of the week was 19,866 CNY/ton, dropping to an average of 19,033 CNY/ton by May 9—a weekly decline of 1.19%, yet still up 22.14% year-on-year. Throughout the week, supply from major manufacturers remained tight; however, affected by the May Day holiday, downstream demand was sluggish, resulting in fewer transactions. In addition, with the price of raw material pure benzene also declining, the polymeric MDI market faced downward pressure under the combined impact of these two negative factors.

Supply side: BASF's partial MDI units in Shanghai were shut down for maintenance on April 20, with a duration of about 1-2 weeks. Tosoh Corporation's MDI plants, with capacities of 130,000 tons/year and 70,000 tons/year, are scheduled to start shutdown maintenance at the end of April, with an expected duration of around 40 days.

Cost Perspective: Geopolitical tensions have eased somewhat, putting downward pressure on oil prices. As a result, pure benzene has been dragged down by falling oil prices and its price has declined. In the short term, although some downstream sectors are experiencing negative feedback, the supply-demand balance for pure benzene remains tight, with port inventories continuing to decline, thus providing ongoing support for prices.

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

Market forecast: The current polymeric MDI market in China is showing a weak trend. After the holiday, the market is gradually recovering, especially with strong demand from overseas markets. It is expected that in the short term, the polymeric MDI market in China will consolidate after a decline.