SunSirs: Bottom Rebound and MDI Prices Rose Slightly in April

Price trend

In April, the domestic aggregate MDI market rebounded after bottoming out. According to the sample data monitored by SunSirs, the average price of the domestic aggregate MDI market was 11,350 RMB/ton at the beginning of the month, and the aggregate polymerization MDI price was 11,475 RMB/ton at the end of the month, a 1.10% increase during the month. The price fell by 35.35% compared with the same period last year.

Analysis review   

Product: In April, the domestic aggregate MDI market declined first and then gradually increased slightly, with fluctuations of around 500-600 RMB/ton throughout the month. This month, the supply-side benefits continued to be released, boosting the market sentiment, and the current market price was running at a high level. Up to now, the Ruian factory was still in the parking state. In May, Wanhua Yantai Plant, Shanghai Huntsman, and Shanghai BASF all have routine maintenance plans; foreign Japan and South Korea plant load is not high, and Japan Tosoh ’s Nanyang plant also has maintenance plans in early May. In the later period, the supply side will gradually become tense. Covestro's guidance price has also increased mainly for several weeks this month, and the amount of tasks is not evaluated.

Industrial chain: In terms of raw materials, pure benzene: The price of pure benzene rose first and then fell this month, and the price fluctuation generally followed the fluctuation of crude oil. Due to the substantial increase in the bottoming out of society, the purchase of pure benzene has increased significantly, and the overall price has been rising rapidly and falling slowly.

Aniline: In terms of aniline, the domestic aniline market rebounded after falling, and fell to the end of the month. As of April 30, the mainstream negotiation prices in the East China market refer to 4,800-5,000 RMB/ton. The mainstream negotiation price in Shandong market is 4,890 RMB/ton.

Industry: According to the price monitoring of SunSirs, in April 2020, there were 39 kinds of commodities in the chemical industry sector of the rise and fall of bulk commodity prices list, including 26 kinds of commodities with an increase rate of more than 5%, accounting for 29.2% of the number of commodities monitored in the sector; the top three commodities with an increase rate were acetone (77.02%), acrylic acid (21.76%) and hydrogenated benzene (20.86%). There were a total of 45 commodities that fell sequentially, and 21 commodities that fell more than 5%, accounting for 23.6% of the monitored commodities in the sector; the top 3 products that fell were ethylene (-31.64%) and butadiene (-24.14 %), Hydrochloric acid (-22.37%). The average monthly increase or decrease was 0.37%.

Market outlook

Views from SunSirs: It is understood that the main factories may have a slight upward trend in May listing. In addition to the gradual reduction in the supply of various manufacturers entering May, the supply side is tight. The aggregate MDI market quotes may continue to rise slightly.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.