Northwest European Caustic Soda at Four-Year High Amid Two Force Majeures

The Chinese TDI market decreased in June 2017. The TDI price was weak at the beginning of June. The prices for TDI produced by BASF continued to go down, and prices for Chinese-made TDI followed the downtrend. Since the domestic factories held a meeting and units in Juli Chemistry and Fujian Southeast Electrochemical started to take overhaul, the Chinese TDI price increased in a short time. However, the downstream market was weak and the price dropped.

Though the traders’ inventory was at a low level, they had to cut prices to promote sales amid the bearish sentiments.The downstream demand was flat influenced by the by the ‘buy-high’ mentality. The demand was on a need-to basis.

At the end of June, the downstream players were bearish about the coming TDI market. Most buyers held wait-and-see attitude and waited the price to drop. Up to June 30, the Chinese mainstream negotiation price was RMB 22,600/mt, which fell RMB 2,600/mt or 10.32% M-O-M. The Shanghai mainstream negotiation price was RMB 22,900/mt, which fell RMB 2,900/mt or 11.24% M-O-M. At present, the bearish atmosphere is strong. In the future, it is predicted that the Chinese TDI market will continue to slip because of lack of messages.