October 16th News
According to the commodity market analysis system, from October 12 to 16, the Chinese polymeric MDI market saw a slight increase. The average price at the beginning of the week was 18,566 CNY/ton, and on October 16, it was 18,633 CNY/ton, rising by 0.36% within the week and increasing by 28.51% year-over-year. During the week, the polymeric MDI market steadily increased, with major manufacturers raising their prices, boosting market confidence, and traders following suit. The cost of pure benzene, a key input, also rose, further supporting the market. Downstream demand was moderate, primarily driven by essential needs.
Supply side: Korea’s Kumho Mitsui MDI plant, with an annual capacity of 410,000 tons, began a scheduled shutdown for maintenance on October 21, expected to last about one month. Japan’s Tosoh MDI plant, with an annual capacity of 200,000 tons, is slated to shut down for maintenance in mid-September, with the outage projected to last approximately 40 days.
Cost perspective: Recently, the market price of pure benzene has risen. The inventory in the main ports of East China is low, and some short positions have been replenished at mid-month, driving up the market price. In Shandong, the trading of pure benzene is decent, with active buying at lower prices. The demand is steady, and the supply is expected to remain slightly tight in the short term, supporting a firm market.
Demand Side: Downstream demand is decent, with rigid demand following. Traders maintain shipments, and operators in China are cautious.
For the future market forecast, the current polymeric MDI market in China is experiencing high prices due to increased costs, with suppliers showing a clear intention to maintain these prices. After a period of price increases, the market has stabilized. It is expected that in the short term, the market will fluctuate in line with changes in raw material prices. Close attention should be paid to changes in supply and demand as well as any new developments.
