Price Trend

During the first half of April, the TDI market in East China experienced a pattern of initial gains followed by a decline, effectively retracing its earlier price increases. As of April 14, the average market price in East China stood at 20,100 RMB/ton—down 0.5% from the average of 20,200 RMB/ton recorded on April 1—while still representing an 81.63% year-on-year increase. Driven by high price levels, downstream sectors exhibited a distinct resistance to current pricing; consequently, demand remained sluggish, leading to a softening in actual market transaction prices.

Market analysis

Supply and Demand: Domestic production facilities—including those at Wanhua—continued to operate at medium-to-high utilization rates. Market inventories remained at low levels; while domestic demand was moderate, international demand was relatively strong.

Cost Side: The toluene market tracked fluctuations in crude oil prices. Downstream buyers were replenishing stocks on an as-needed basis, and purchasing sentiment remained subdued; consequently, toluene prices are trending downward amidst market volatility.

Market Outlook:

Overall: The TDI market was temporarily characterized by the interplay of four key factors—ample supply, sluggish domestic demand, export support, and low inventory levels—which have resulted in minimal price volatility. TDI prices are expected to undergo a period of weak but stable consolidation.

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