August 14 news
According to the commodity market analysis system, from August 10 to 14, the Chinese polymeric MDI market experienced minor fluctuations. The average price at the beginning of the week was 17,866 CNY/ton, and on August 14, it was 17,966 CNY/ton, a decrease of 0.55% within the week, but an increase of 14.32% compared to the same period last year. During the week, there were many reports of supply tightening, and cost support remained strong. There were numerous inquiries from downstream buyers, but actual transactions were limited. Middlemen's quotes were relatively firm, but due to demand constraints, transaction prices slightly softened.
Supply side: The 80,000-ton/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-ton/year MDI plant in Japan is scheduled to begin a shutdown for maintenance in early September, lasting approximately 45 days. The 1,100,000-ton/year MDI plant at Wanhua Yantai Industrial Park in China began a shutdown for maintenance on August 10, 2026, with an expected duration of around 45 days.
Cost aspect: The pure benzene market has shown a strong fluctuation. Due to the impact of typhoons, the unloading of pure benzene shipments has been delayed, and inventories at the main ports in Jiangsu continue to decline. Additionally, the restart times for some pure benzene facilities have been postponed, leading to lower-than-expected production. As a result, the negotiation focus for pure benzene has increased. However, some downstream products continue to show negative demand feedback, and the overall load on the downstream sector remains low. Overall, although the increase in supply is slightly below expectations, the demand side is still weak, limiting the rebound potential for pure benzene.
Demand Side: Downstream demand inquiries are moderate, with transactions mainly in small volumes, indicating insufficient demand support.
Looking ahead, the polymeric MDI market is expected to see 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. Therefore, we anticipate that the polymeric MDI market will likely remain in a stalemate and consolidate in the short term. We urge close monitoring of changes in market supply and demand as well as developments on the news front.
