SunSirs: MDI Market Dropped from High Levels

Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic MDI market had experienced a high decline. From August 30th to September 6th, the domestic MDI market price fell from 17,516 RMB/ton to 17,133 RMB/ton, with a price drop of 2.19% during the cycle, a month on month decrease of 1.53%, and a year-on-year increase of 12.87%. At the end of August, some manufacturers' prices were on the high side, but the market experienced high transmission barriers. The overall follow-up ability of the downstream market was weak, and the buying sentiment was relatively average. Traders were gradually lowering their prices to adapt to the market.

Analysis review

On the supply side, the maintenance of the 80,000 ton/year device in Dongcao Ruian was completed, and the device was restarting. Supply would soon resume in early September. The MDI integration (mainly including 1.1 million tons/year of MDI and 300,000 tons/year of TDI), petrochemical integration (mainly including 750,000 tons/year of PDH and 760,000 tons/year of PO/MTBE24), and related supporting devices in Yantai Industrial Park was shut down for maintenance starting from August 15, 2023, with an estimated maintenance period of about 40 days. The overall supply was relatively limited. The supply side had positive influence for the market.

On the cost side, the raw material pure benzene and international crude oil prices continued to be positive, while the domestic pure benzene market price was operating at a high level. As of September 6th, the benchmark price for pure benzene in SunSirs was 7,910.50 RMB/ton. Raw material aniline: The domestic aniline market continued to rise, and as of September 6th, the benchmark price of aniline in SunSirs was 11,800.00 RMB/ton. The cost side of MDI had positive influence for the market.

On the demand side, the overall performance of the downstream market pipeline industry was average. Although the cold industry was acceptable, the overall increase was limited, and the market was slowly advancing. The demand of MDI is mixed for the market.

Market outlook

The supply side was positive, and downstream demand turned to be average. SunSirs' MDI analysts predict that the domestic MDI market will be mainly on a wait-and-see basis.

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