Why Did the Chinese MDI Market Fluctuate Frequently in Nov 2017?

In November, the average market price of Chinese MDI was RMB 27,862/mt, which was down 12.13% M-O-M and was up 49.92% Y-O-Y.

In November, the Chinese MDI market fluctuated frequently. Up to November 30, the mainstream negotiation price of Chinese MDI was in the range of RMB 28,000-28,500/mt in cash, which was down RMB 400/mt, or 1.4% M-O-M. The price mentioned above was delivered or self-delivery price with VAT in barrel.

The main reasons for changes in the Chinese MDI market are as following.

Reasons for Decrease

Firstly, in early November, Sadara Chemical imported a large amount of MDI with low cost. Secondly, in the middle of November, although the supply of Chinese MDI was tight in the sport market, the rigid demand was weak. So, traders decreased MDI offers.

Reasons for Increase

Firstly, in the early November, Wanhua Chemical controlled to sell MDI to the market. With the hazy weather, the MDI was delayed in Tianjin port, which led the supply of MDI to be tight in North China. Secondly, a 500kt/a unit in Covestro Shanghai took overhaul on November 11, which will last for three weeks. The consumption of MDI in Sadara Chemical declined and it was hard to delivery good in Tianjin port. In the middle of November, the overall supply was weak in Chinese MDI market. Thirdly, a 1,200kt/a unit in Wanhua Ningbo will take overhaul in December. The unsettle price of MDI in BASF will be high. The supply of MDI will be tight. It is predicted that the Chinese MDI market will rebound.