September 18 news
According to the commodity market analysis system, from September 14 to 18, the Chinese polymeric MDI market experienced fluctuation within a range. The average price at the beginning of the week was 18,466 CNY/ton, and on September 18, it was 18,366 CNY/ton, a decrease of 0.54% within the week, and an increase of 22.31% year-on-year. During the week, Wanhua Chemical announced that starting from September 14, 2026, the prices of MDI and TDI in Southeast Asia and South Asia would be increased by 300 US dollars per ton. Traders raised their quotes, but downstream demand followed with small orders, and overall demand was moderate. Subsequently, major manufacturers made price adjustments, leading to sluggish market sales, and intermediaries slightly adjusted their prices, causing the price center to shift downward.
Supply side: Tosoh Corporation in Japan plans to shut down its 200,000 tons/year MDI plant for maintenance starting early September, with an estimated duration of around 45 days. The 1,100,000 tons/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 Side: The pure benzene market is experiencing high volatility, with overall supply being weak due to the significant increase in oil prices and freight costs. Downstream demand is expected to rise during the golden September and silver October periods, but there is caution against chasing high prices. The market has shown multiple instances of surging and then retreating, influenced by weaker demand and expectations of a weakening supply-demand balance. In the short term, the supply and demand for pure benzene are expected to be in a tight balance, with low port inventories providing support for spot prices. Oil prices remain the primary driver of short-term pure benzene prices.
Demand Side: Downstream demand inquiries are moderate. After the price increase, there has been an uptick in small-scale inquiries, but actual transactions remain low, indicating insufficient support from the demand side in China.
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.
