This Week, the Chinese Polymeric MDI Market Rebounded and Rose (5.11-5.15)

According to the commodity market analysis system, from May 11 to 15, China's polymer MDI market prices stopped falling and began to rise. The average price at the beginning of the week was 18,933 CNY/ton, rising to 19,433 CNY/ton by May 15—a weekly increase of 2.64% and a year-on-year increase of 17.42%. During the week, frequent reports of maintenance shutdowns at major manufacturers boosted market confidence. Some traders raised their quoted prices, leading to a narrowing of the price spread at lower levels. Overseas orders remained stable, while domestic demand was primarily driven by essential needs, with limited room for growth in overall demand.

Supply Side: Japan’s Toa Kasei has MDI plants with capacities of 130,000 tons/year and 70,000 tons/year, respectively. These plants are scheduled to begin maintenance shutdowns at the end of April, with an expected duration of around 40 days. A certain Shanghai plant with an MDI capacity of 300,000 tons/year has already shut down for maintenance on May 11, and the outage is expected to last approximately one month, keeping the supply tight. Meanwhile, the company’s 250,000-ton/year MDI plant located in South Korea is operating at a reduced load.

Cost Perspective: This week, the price of pure benzene showed a weak downward trend. Overall, supply and demand expectations for pure benzene remain tight, and port inventories continue to decline. Currently, there are still significant differences between the U.S. and Iran regarding the content of peace talks, leading to ongoing geopolitical uncertainties. Oil prices remain relatively strong in the short term, providing some support for pure benzene. However, demand-side factors are weighing on the market, limiting upward momentum. We should closely monitor developments in the U.S.-Iran situation.

Demand Side: Downstream demand is moderate; inquiry volumes have increased, but actual transactions remain limited.

Looking ahead, the current polymeric MDI market as a whole is characterized by tight supply, while Chinese demand remains moderate. We are closely monitoring downstream feedback, and it is expected that the polymeric MDI market will remain stable in the short term.

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