Price trend

According to the SunSirs commodity market analysis system, the domestic MDI market experienced a weak decline in October. From October 1 to 29, the domestic MDI market price fell from 14,833 RMB/ton to 14,300 RMB/ton, a monthly drop of 3.6% and a year-on-year decrease of 21.79%.

In early October, major manufacturers cut prices, and traders frequently offered low prices. News was relatively quiet, support was insufficient, and downstream demand was sluggish, with transactions primarily focusing on small orders. Industry sentiment was pessimistic, and prices continued to decline.

In mid-to-late October, major manufacturers continued to reduce prices, and traders' quotes followed market trends. Subsequently, the announcement of major manufacturers' maintenance plans triggered a tentative increase in traders' quotes, leading to an increase in inquiries and a slight improvement in the trading atmosphere. The MDI market, after a slight rise, then weakened, remaining stagnant until the end of the month.

Analysis review

On the supply side, South Korea's Kumho 200,000 tonne/year MDI plant was undergoing maintenance in early September, lasting 20-30 days. Wanhua Ningbo also had scheduled maintenance in November, with other units operating smoothly.

On the cost side, regarding raw material benzene, downstream benzene producers continued to suffer losses, with low enthusiasm for raw material procurement and a cautious market sentiment. Coupled with a lack of downstream market support and insufficient new orders from end users, the benzene market continued to decline in October. However, the aniline market saw a strong rise in October. The aniline market price was 7,750 RMB/ton on October 1st and 7,995 RMB/ton on October 28th, a 3.06% increase over the same period.

On the demand side, the downstream peak season was not prosperous, and the silver October market ended flatly. With strong supply and weak demand, the MDI market is prone to fall but difficult to rise.

Market outlook

Major factories have maintenance plans in November. The market was reluctant to sell at low prices. There was support on the supply side in the future, but it was difficult for the demand side to improve. It is expected that the MDI market will fluctuate in the short term.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.