September 11th News
According to the commodity market analysis system, from September 7 to 11, China's polymer MDI market showed a noticeable upward trend. The average price at the beginning of the week was 17,366 CNY/ton, rising to 18,066 CNY/ton by September 11—a weekly increase of 4.03% and a year-on-year rise of 20.44%. During the week, market inquiries were relatively subdued, demand remained tepid, and intermediate traders maintained steady shipment levels. Subsequently, driven by a sharp rise in crude oil prices and stronger cost support, major polymer MDI producers raised their quoted prices, prompting traders to follow suit. As a result, the market saw mostly small-volume transactions.
Supply side: Tosoh Corporation of Japan's 200,000 tons/year MDI plant is scheduled to shut down for maintenance starting early September, lasting approximately 45 days. The 1,100,000 tons/year MDI plant at Wanhua Yantai Industrial Park in China began its shutdown for maintenance on August 10, 2026, with an expected duration of around 45 days.
Cost Perspective: This week, the price of pure benzene rose sharply. Geopolitical risks continue to push up crude oil prices, while port inventories of pure benzene have been declining and future shipments remain relatively limited. Additionally, with the upcoming double holidays expected to boost pickup demand, the basis spread for pure benzene and the focus of commercial negotiations have been steadily rising.
Demand Side: Downstream demand inquiries are generally moderate. After prices rose, there has been an increase in small-order inquiries, but actual transactions remain relatively few, indicating insufficient support from the demand side.
Looking ahead, the current MDI market is being supported by high costs, yet demand remains weak. Amidst a tug-of-war between bullish and bearish forces, we expect the market to fluctuate in line with raw material price movements in the short term. We recommend closely monitoring changes in market supply and demand as well as developments in news and information.
