TDI Market Will Remain Weak in the Short Term

Introduction: In December, the TDI market prices inched down. No stimulating factors in the market. Producers mainly held stable offers. It is predicted that the TDI market will continue to inch down.

The TDI market prices slumped from H2 October to H2 November. Downstream users were bearish about the market, and held low inventories. At the end of November, most downstream users had run out of the TDI stocked previously. The purchasing activities became frequent. Most goods were held by the producers. When the prices declined to RMB 33,000/mt, downstream users purchased actively. Trading prices were mainly in the range of RMB 33,000-33,500/mt.

With the release of trading, the inventory at producers declined greatly. The goods were mainly held by middlemen and downstream users. The market rebounded and downstream users started to show thin interest in buying goods. In December, the actual dealing prices inched down.

Influenced by the logistics, the delivery for TDI traded in H2 November was slow. So, the available goods in the market was not ample. After the mild declines, traders purchased limited goods and sold more. Buyers lacked confidence in the market.

According to ECHEMI, some downstream users’ TDI was consumed quickly. The demand for TDI will improve. But the actual inquiries were limited. Most downstream users were bearish about the market.  

Currently, traders don’t short the market, and the trading prices are stable. Producers won’t reduce the prices in the short term. Moreover, the supply is slightly tight in the market. Given the stable supply and demand, the TDI market is expected to be largely stable in the short term. Players should focus on the inventory changes and the consumption for TDI.