August 7 news
According to the commodity market analysis system, from August 3 to 7, the Chinese polymeric MDI market saw a slight increase. The average price at the beginning of the week was 17,866 CNY per ton, and on August 7, it was 18,066 CNY per ton, with a weekly increase of 1.12% and a year-on-year increase of 14.35%. During the week, frequent news of major plant maintenance led to expectations of tightened supply, resulting in tight inventory and firm prices at factories. Traders slightly pushed up prices, and there was an increase in market inquiries, with small-volume transactions being the main activity. Amid the supply and demand dynamics, the transaction focus of polymeric MDI shifted slightly upward.
Supply side: The 80,000 tons/year MDI plant of Tosoh in Japan was shut down for maintenance at the end of July, lasting about one month. Tosoh's 200,000 tons/year MDI plant is scheduled to start shutdown maintenance in early September, with a duration of about 45 days. The 1,100,000 tons/year MDI plant at Wanhua Yantai Industrial Park in China will begin shutdown maintenance on August 10, 2026, with an expected duration of about 45 days.
Cost Aspect: The market price of pure benzene has declined, while the underlying fundamentals continue to strengthen. As expectations for the resumption of shipping through the strait increase, the tight supply situation of crude oil is expected to gradually ease, leading to a decline in crude oil prices. This has weakened the cost support for pure benzene. Additionally, as previously shut-down maintenance facilities in China are gradually returning to operation, the tight supply situation is expected to ease, further contributing to the decline in pure benzene prices.
Demand Side: Downstream demand inquiries are moderate, with small transactions predominating after the price increase, indicating insufficient demand support in China.
Looking ahead, the polymeric MDI market is expected to face tightening supply in the near term, and manufacturers remain determined to hold prices. However, demand remains weak, and support from the demand side is insufficient. As a result, upward pressure on the polymeric MDI market is likely to intensify in the short term. We should closely monitor changes in market supply and demand as well as developments in relevant news.
