SunSirs: Downstream Demand Was Sluggish, TDI Prices Continued to Decline in July

Price trend

According to the monitoring data of SunSirs, the price trend of TDI in East China continued to decline in July. The average price of TDI in the early July was 17,625 RMB/ton, and the average TDI price at the end of July was 15,850 RMB/ton, which was reduced by 1,775 RMB/ton within the month. The overall declined 10.07%. As of July 31, the reference price of domestic TDI with invoices was around 15,200-15,500 RMB/ton, and the reference price of Shanghai TDI with invoices was around 15,500-16,000 RMB/ton.

Analysis review

In July, the TDI market continued to run weakly, and the price fell continuously during the month. In the first half of the month, the market was down in a narrow range. The downstream terminal was in the traditional off-season, and the demand was weak. The stockholders negotiated shipments at a profit-cutting. The factory’s stock was tight, and the market mentality gave TDI a certain support. The market focus moved down slightly. In the second half of the month, the TDI market fell sharply, mainly because the terminal industry was sluggish, domestic and foreign trade demand was weak, coupled with market news that the Shanghai factory TDI devices were restarted one after another, the supply of goods in the market was expected to increase, and the supply support was weakened. Stockholders were actively making profits-cutting for shipment, and the focus of trading continued to move downward.

The upstream toluene market fluctuated downward. On July 31, the price of toluene was 7,640 RMB/ton, a decrease of 1,260 RMB/ton from the price at the beginning of the month, which was 8,900 RMB/ton, an overall decrease of 14.16%. Crude oil fell broadly in July, toluene fell deeply in Asia, the support from external news was weak, the domestic downstream situation of toluene was weak, and demand follow-up was insufficient. Trading was light in the market, and the price of toluene fell sharply under the influence of multiple bears.

Market overview and Market outlook

According to the analysis of the TDI data engineer of SunSirs, the current domestic TDI market supply and demand game, the supply of the supplier factory is stable, and the offer of the holder is temporarily stable. Holders' offers are temporarily stable. Although there is no improvement in downstream demand, the purchases on demand in the market are more than before. The industry's attitude is cautious and wait-and-see. In the short term, the TDI market is consolidating at a low level.

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