Price trend  

According to the SunSirs commodity market analysis system, TDI prices in East China fell slightly last week. As of August 22, the average price in East China was 15,400 RMB/ton, compared to 15,666 RMB/ton on August 18. This represented a weekly decrease of 1.7% and a year-on-year increase of 9.22%.

Analysis review

Supply and Demand

The TDI market continued its downward trend last week. Wanhua's new Phase II TDI plant (360,000 tons/year) at its Fujian Industrial Park recently completed completion and commenced production, producing qualified products. Force majeure at a German TDI plant lasted longer than expected, prompting a major Shanghai manufacturer to reduce its China supply by 10% this month to support the European market. Overseas demand remained strong. Factories were controlling inventory and maintaining prices, while traders were adapting to market trends. Downstream suppliers were clearly resisting high prices, and under the game of supply and demand, TDI transaction volume was shifting downward.

On the supply side: Yantai Wanhua's TDI unit shut down for maintenance starting August 19th, expected to last approximately 40 days; Gansu Yinguang also shut down for maintenance on July 27th.

On the cost side: The toluene market saw a slight decline, with downstream procurement based on demand. Overall, both supply and demand were weak, creating a sluggish market.

Future outlook:

TDI data analysts of SunSirs believe that the TDI market will continue to maintain a tight supply situation. The supply side is favorable, but the downstream demand is poor. It is expected that the TDI market will maintain a weaker trend in the short term, and close attention should be paid to changes in market supply and demand and news.

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