SunSirs: The TDI Market Rose First and Then Fell in October

Price trend

According to the Commodity Market Analysis System of SunSirs, domestic TDI prices rose first and then fell in October. At the beginning of the month, the average market price of TDI was 18,033.33 RMB/ton. On October 31, the TDI price was 17,400.00 RMB/ton, and it was reduced by 633.33 RMB/ton within the month, with an overall decrease of 3.51%.

Analysis review

In October, the TDI market rose first and then fell, with overall weakness being the main trend. In the first half of the month, TDI prices were relatively strong and upward. After the National Day holiday, there was a dense release of information on TDI factory equipment maintenance, which boosted market sentiment. Holders reported a significant increase in prices. Afterwards, suppliers' intention to support the market remained strong, and the trade market followed the guidance of the news. TDI prices continued to rise; In the second half of the month, the supplier market returned to calm, and the willingness to ship in the trade market increased. However, terminal performance was mediocre, downstream demand was weak, and shipments from holders were hindered. TDI quotations continued to decline, resulting in sluggish market trading and a significant decline in TDI.

The upstream toluene market responded with a decline, with prices at 6,900 RMB/ton on October 31st, a decrease of 1,310 RMB/ton from the beginning of the month's price of 8,210 RMB/ton, a decrease of 15.96%. Since October, the overall international crude oil price has declined, weakening the support for the cost of toluene. Downstream demand has entered the off-season, with weak market inquiries and insufficient support for toluene. In addition, toluene production was stable, and supply pressure was increasing. Under the influence of multiple bearish factors, the negotiated price of toluene in the market continued to decline.

Market outlook

According to TDI data analysts from SunSirs, the domestic TDI supply is currently stabilizing, with weak downstream demand. The news from factories is quiet, and there is insufficient confidence in the trade market. The sentiment of buying up or not buying down is gradually affecting the demand side. Under the supply and demand game, it is expected that the short-term TDI market will be weak and consolidate. Please pay attention to the downstream follow-up situation.

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