SunSirs: Domestic MDI Market Was in a Weak Operation

Price trend

According to the monitoring of SunSirs, the domestic MDI market was weak. From February 17 to 24, the market price of domestic MDI fell from 16,500 RMB/ton to 16,240 RMB/ton. The price fell by 1.58% in the week. The price rose by 8.56% month-on-month and fell by 20.78% year-on-year. The main reason for affecting the trend of the aggregated MDI market was still the demand side. The purchasing atmosphere in the downstream industry was still weak. Some traders and downstream were bargain-hunting, the overall demand  increased compared with the previous period.

Analysis review

On the supply side, Chongqing BASF 400,000 t/a unit entered the maintenance state on February 5, and the supply was reduced. Under no great pressure, the production enterprises were still in a price-supportive attitude.

In terms of cost, raw material pure benzene: the domestic market price of pure benzene fluctuated slightly. The spot transaction was 6,970-7,070 RMB/ton; The market price in Shandong was 6,720-6,880 RMB/ton. Raw aniline: orders from some downstream factories increased, and demand warmed; In addition, due to the planned overhaul of aniline plant in March, the overall state of mind of the market improved, and the aniline market rose sharply. There were obvious positive factors on the cost side of MDI in the short term.

On the demand side, the trading atmosphere in the terminal market was poor, and the ability to follow orders was limited. Downstream factories and traders still have some early inventory, and mainly digest inventory orders in the short term.

Market outlook

The production enterprise is close to the settlement period, and the supply is shrinking within the month, the supply side maintains a strong support, but the follow-up ability of the demand side is relatively limited. According to the analyst of MDI of SunSirs, the market situation of MDI in China is mainly stalemate and consolidation.

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