TDI Price Trend Continues to Rise and Market Dynamics

TDI price trend continues to rise

According to the monitoring data, the price trend of TDI in East China continued to rise last week, the average price of the market in East China was 19,575 CNY/ton, compared with 18,600 CNY/ton on February 7, up 975 CNY/ton or 5.24% during the week.

During the week, the TDI market was strong, the domestic TDI plant started at a low level, Gansu Yinguang, Yantai Juli plant still has not restarted, Wanhua Fujian plant operation is unstable, the market is slow to fill the spot, overseas TDI supply is tight, the price is high, the field of stockholders are strong market attitude, the TDI market is running high and firm.

The offer range of domestic goods in East China distribution market is around RMB18,500-18,600/ton, and the offer range of Shanghai goods is RMB19,000-19,200/ton, and the actual orders are mainly negotiated. Recently, the dealers' quotations followed the market news and continued to rise during the week.

Recent TDI upstream and downstream dynamics

The latest price of TDI on Feb. 15 was 19,700.00 CNY/ton, up 6.63% in the last 10 days, 10.36% in 30 days and 22.36% in 60 days.

Upstream toluene market rose first and then fell, toluene domestic average price at 6860 CNY/ton, up 9.06% compared with the pre-holiday.

During the Chinese New Year, crude oil rose continuously, driving energy-related bulk products generally up, strong cost-side support, toluene market atmosphere is positive, driving toluene prices to actively follow the rise, but from the perspective of demand performance, the downstream after the year is slow to resume work, the actual transaction is limited, the market fell back quickly.

Market Dynamics

The domestic TDI market is high and firm, foreign demand is strong, and prices continue to rise, the downstream has not yet fully resume work, TDI export driven by the domestic market spot fill limited, the stockholder quotes strong upward, the trader price attitude is strong, the offer is high and firm, the supply-side market dominates, the market is expected to run strong TDI market after the market.

East China market is running on a wait-and-see basis, the market spot continues to be tight, the stockholders offer high and firm, the downstream resumes work one after another, and holds a wait-and-see attitude towards high prices, the terminal market trading is quiet, the TDI market is finishing up after the market, and pay attention to the downstream follow-up after the festival.

East China distribution market offer, domestic goods at about 19000-19400 CNY/ton, Shanghai goods offer about 19500-19800 CNY/ton, the actual transaction price subject to negotiation, the market is concerned about the factory news guidance.