Price trend:

According to the commodity market analysis system of SunSirs, from November 3rd to 7th, the domestic MDI market remained stable, with the average price holding steady at 14,300 RMB/ton, a year-on-year decrease of 22.28%. The MDI market consolidated during the week, with relatively quiet news. Downstream buyers entered the market only as needed, resulting in a sluggish trading atmosphere. Traders' sales were generally average, awaiting guidance from news and operating cautiously.

Market Analysis

On the supply side, Kumho Chemical's 200,000-ton/year MDI plant in South Korea underwent maintenance in early September for 20-30 days and had already resumed operation. Ningbo Wanhua Chemical's plant has a maintenance plan in November, while its other units were operating smoothly.

On the cost side, the benzene market improved slightly last week. Downstream orders for benzene were insufficient, and losses continued. Downstream buyers remained unenthusiastic about purchasing raw materials. However, as benzene prices hit new lows, downstream buyers entered the market at lower prices, and the market rebounded somewhat, with prices rising slightly last week.

On the demand side, downstream demand remained weak, and the market had not shown any significant improvement. Given the weak fundamentals, the MDI market is unlikely to see any improvement.

Market outlook

As of November 7, the MDI market was experiencing stable supply and ample inventory. However, planned maintenance shutdowns at major northern manufacturers and plants in Ningbo may provide some support to prices. The MDI market is expected to consolidate in the short term; close monitoring of supply and demand changes is crucial.

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