Price trend

According to the commodity price analysis system of SunSirs, from February 2nd to 6th, the domestic MDI market price showed a weak downward trend. The average price at the beginning of the week was 14,133 RMB/ton, and the average price on February 6th was 14,000 RMB/ton, a decrease of 0.91% during the week and a year-on-year decrease of 24.93%. During the week, the MDI market was sluggish, with ample supply from suppliers, weak market inquiries, and low transaction volume. Intermediaries adjusted their prices according to market conditions, with some selling at lower prices. News flow was relatively quiet, and there was insufficient positive market support.

Market analysis

Supply side: Domestic MDI plants were operating normally, while BASF's 650,000 tons/year MDI plant in Belgium was operating at a low capacity, which is expected to continue until March.

Cost perspective: The price of raw material benzene fluctuated and risen recently. Domestic production has increased slightly, but imports remained high. Downstream styrene profits have recovered, and aniline plant operating rates have increased, leading to an expected increase in the overall capacity utilization rate of downstream benzene industries. Downstream companies actively stocked up before the holiday, resulting in a decrease in inventory at East China ports. The short-term market is significantly affected by cost and demand fluctuations, and with increased supply, the fundamentals are expected to weaken.

Demand side: Downstream buyers were purchasing on an as-needed basis, pre-holiday stocking was largely complete, and transactions decreased.

Market outlook:

The MDI market was stable. With the approaching Chinese New Year, logistics and transportation were becoming restricted, and the MDI market is expected to consolidate in the short term.

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