Multiple Positives Superimpose the Strong Rise of TDI Market

The price trend of TDI in East China continued to rise. On August 19, the average market price in East China was 17,175.00 CNY/ton, an increase of 3.46% compared with the price of 16,600.00 CNY/ton at the end of last week, and an increase of 9.05% compared with the beginning of the month.

The TDI market rose widely. The reason for the rise was the superposition of multiple good news. In the external news, Covestro's 300,000-ton TDI plant was force majeure, the supply was tightened, and the export demand increased. In terms of domestic supply, the big factories in North China, Shanghai BASF, Covestro Co., Ltd. Sichuang limited supply, factory supply weakened, suppliers’ attitude towards the market was firm, stockholders’ offers rose, and some traders closed their orders and temporarily stopped offering quotations. The range is around 16,500-17,000 CNY/ton, and the price range for Shanghai goods is 16,800-17,500 CNY/ton, and the actual order is mainly negotiated.

The upstream toluene market fluctuated, and the price fell first and then rose during the week. As of August 19, the domestic average price of toluene was around 7,480 CNY/ton, an increase of 0.54% from last week. The improvement in gasoline demand in Asia supported the rise in the price of toluene in the outer market. The domestic terminal gasoline market continued to rise and stimulated, while there was a price gap between toluene and xylene. The market's enthusiasm for purchasing toluene increased, driving the trend of toluene to rise.

Analysis of the market outlook, the TDI data engineer of the business agency believes that although the current attitude of the factory is obvious, and the on-site suppliers are mostly favorable, but from the perspective of downstream demand, the terminal industry is generally traded, and the demand for TDI is weak. Resistance is mainly due to excessive consumption of inventory, insufficient follow-up, and the game between supply and demand on the market. It is expected that there is limited room for TDI prices to rise.