Both Supply and Demand Weak, TDI Market Slumps in May

May 28th News

According to the commodity market analysis system, the TDI market in East China fell sharply in May. At the beginning of the month, the average price of TDI was 17,833 CNY/ton, and on May 28, the price of TDI was 15,966 CNY/ton, a decrease of 10.47% within the month, but an increase of 30.16% year-over-year.

In May, the TDI market was significantly influenced by supply and demand dynamics. At the beginning of the month, TDI prices remained high, but weak demand began to emerge, prompting intermediate traders to loosen their quotes and shifting the transaction price center downward. In the middle of the month, frequent reports of maintenance shutdowns at major overseas TDI producers led to expectations of tighter supply. Meanwhile, Chinese demand continued to weaken. With both supply and demand in a weak state, the downward pressure on TDI prices intensified. By late May, the downward trend in the TDI market slowed down, maintaining a slight downward trajectory.

Supply Side: Japan’s Mitsui 50,000-ton/year TDI plant is scheduled to shut down for maintenance on May 14, with the maintenance expected to last until July 7. Shanghai’s B Factory, with an annual TDI capacity of 160,000 tons, began its annual maintenance on May 20, and the maintenance is expected to last about three weeks. India’s GNFC company, at its Dahej facility, plans to conduct a scheduled annual maintenance shutdown for its TDI plant from May 30, 2026, to June 11, 2026, totaling 13 days of maintenance.

Cost perspective: The toluene market in May showed a fluctuating trend, with overall prices falling compared to the beginning of the month. The supply of toluene in May was generally stable, but the follow-up purchasing strength from downstream terminals was average, with rigid demand procurement dominating market transactions. Looking ahead, the cost side still has a supporting effect, and manufacturers' quotation mentality remains firm. However, the recovery pace of downstream demand in China is relatively slow, making it easier for the toluene market to fall than to rise.

Looking ahead, TDI data analysts believe that the current TDI market atmosphere is relatively subdued. Suppliers remain determined to hold their prices, while traders are cautious about entering the market. Under the ongoing interplay between supply and demand, the TDI market is expected to fluctuate within a narrow range in the short term.