Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic MDI market has been declining since June, with an average price of 16,333 RMB/ton at the beginning of the month and 15,933 RMB/ton on June 19th, a decrease of 2.45% during the cycle.

Analysis review

In June, the market was mainly dominated by supply and demand. Starting from the beginning of the month, major factories in Shanghai completed maintenance and began to restart. Fujian Wanhua began maintenance on the 5th. The coexistence of market maintenance and restart, relatively sufficient supply of goods, coupled with weak performance on the demand side, had led to a gradual decline in the MDI market due to strong supply and weak demand.Starting from mid June, large factories in the north have reduced their operations, showing a clear willingness to raise prices. The market stopped falling and pushed up, but due to demand constraints, the increase was limited.

On the supply side, BASF and Huntsman in Shanghai completed maintenance and restarted production. Fujian Wanhua's 800,000 tons/year MDI unit and 360,000 tons/year TDI unit were shut down for maintenance on June 5th, lasting approximately 45 days. The MDI plant in Jinhu, South Korea (200,000 tons/year) was shut down for maintenance at the end of May, with a duration of approximately one month.

Market outlook

The MDI market was constrained by demand, and there was significant resistance to further growth. It is expected that the MDI market will narrowly consolidate in the short term and closely monitor the progress of enterprise maintenance and changes in market supply and demand.

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