Price trend:

According to the commodity market analysis system of SunSirs, the domestic MDI market saw a gradual increase in prices in November. From November 1st to 27th, the domestic MDI market price rose from 14,300 RMB/ton to 14,533 RMB/ton, representing a monthly price increase of 1.63% and a year-on-year price decrease of 19.93%.

In early November, the MDI market remained relatively stable with little news. Downstream buyers entered the market only as needed, resulting in a sluggish trading atmosphere. Traders experienced moderate sales, awaiting further guidance from news sources and operating cautiously.

In mid-to-late November, major manufacturers increased maintenance shutdowns, leading to anticipated tight supply and price increases. The Shanghai factory set a price of 14,600 RMB/ton for distributors and 14,800 RMB/ton for customers paying a fixed price. Traders' confidence improved, and prices followed suit. Inquiries increased, but downstream buyers purchased only as needed, resulting in moderate transaction volume. Prices saw a slight decline at the end of the month.

Market Analysis

On the supply side: Wanhua Ningbo plant began maintenance on November 15th, with an estimated maintenance period of approximately 55 days. BASF's Chongqing plant and Covestro's Shanghai plant both haD maintenance plans for December. Huntsman's 280,000-ton/year MDI plant in the Netherlands experienced an unexpected shutdown in late November, expected to last until around mid-December.

On the cost side, the benzene market fluctuated at low levels in November. Overall supply remained ample; downstream demand was mainly driven by immediate needs, with some loss-making products reducing production to maintain prices, resulting in limited overall support from the demand side. The aniline market saw a firm increase in November. The price of aniline was 7,995 RMB/ton on November 1st and 8,045 RMB/ton on November 27th, representing a 1.88% increase during the period.

On the demand side, demand was relatively stable, with downstream buyers entering the market based on immediate needs and purchasing only as required.

Market outlook

At the end of the month, Huntsman's 280,000-ton unit unexpectedly shut down, and Saudi Arabia's 400,000-ton unit is scheduled for maintenance in January. The supply side is expected to tighten further, and the MDI market is expected to rise in the short term.

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