Price trend

According to the SunSirs commodity market analysis system, the domestic MDI market saw a slight decline from September 15th to 19th, with the average price at the start of the week reaching 15,083 RMB/ton and the weekend price reaching 15,016 RMB/ton, a 0.44% decrease over the week and a 16.96% year-on-year decline. During the week, MDI supply remained stable, with average inquiries and few transactions. Actual transaction prices fell slightly. Intermediary quotes followed market trends, while major manufacturers maintained stable prices. With limited news support, trading sentiment remained subdued.

Analysis review

On the supply side, Tocao Ruian's 80,000 tons/year MDI unit was restarted on August 26 and the unit returned to normal.

On the cost side, benzene prices saw a slight increase last week. Rising international oil prices and the approaching doulbe Holiday had fueled downstream stockpiling, leading to fluctuating upward price fluctuations. However, weak fundamentals had limited upside potential. Aniline prices saw a slight increase, with stable supply and demand, and the outlook remained stable.

On the demand side, the downstream market was not prosperous during the peak season, and the market conditions in September had not improved significantly. Under the weak fundamentals, the MDI market is unlikely to improve.

Market outlook

As of September 19, the supplier's production was stable, the supply was replenished quickly, and under weak demand, the MDI market was expected to be weaker in the short term.

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