Price trend

According to the Commodity Market Analysis System of SunSirs, the TDI market in East China experienced a weak decline in June. At the beginning of the month, the average TDI market price was 12,266 RMB/ton. On June 27th, the TDI price was 11,400 RMB/ton, a decrease of 7.07% during the month and a year-on-year decrease of 20.65%.

Analysis review

In June, the TDI market in East China weakened from strong to weak, with prices continuing to fall. At the beginning of the month, the high-level supply of goods was not smooth, and intermediaries entered and exited quickly. In order to stimulate sales, TDI prices began to decline slightly. In the middle of the month, market maintenance and restart coexisted, with relatively fast filling of market supply and sufficient supply. Due to strong supply and weak demand, downstream companies entered the market on dips, causing TDI to accelerate its decline. At the end of the month, the supplier raised prices, with some individual quotes slightly increasing, and the downstream acceptance rate was average.

Supply side: Shanghai facility resumed operation. Gansu Yinguang was operating at medium to high load. The shutdown and maintenance of the 128,000 ton/year TDI plant in Tokyo, Japan was expected to last for 2 months. There was a maintenance plan for the 360,000 tons/year TDI plant in Fujian on June 5th, which will last for about 45 days.

In June, upstream toluene was greatly affected by oil prices and supply and demand. From June 1st to 27th, the domestic toluene market price rose from 5,470 RMB/ton to 6,097 RMB/ton, with a price increase of 11.05% during the period. Due to the shutdown and maintenance of some enterprises in the first half of the month, the market supply was in a tight state. In the second half of the month, international oil prices fluctuated and rose, with toluene following suit.

Market outlook

The TDI data analyst from SunSirs believes that the news side had limited support for the market, facing a low demand season and weak TDI market growth. As the end of the month approached, close attention should be paid to the settlement prices of major companies, and it is expected that the TDI market will consolidate in the short term.

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