SunSirs: The MDI Market Experienced a Weak Decline (July 21-25)

Price trend

According to the Commodity Market Analysis System of SunSirs, from July 21st to 25th, the domestic MDI market experienced a slight decline, with an average price of 15,516 RMB/ton at the beginning of the week and 15,483 RMB/ton over the weekend, a decrease of 0.21% during the period and a year-on-year decrease of 12.11%. During the week, the factory started operating steadily, downstream inquiries were quiet, and there were many small transactions, resulting in a slight loosening of actual transaction prices. Overseas facilities started maintenance, but the boost to the market was limited.

Analysis review

On the supply side, the Wanhua Fujian plant was shut down for maintenance on June 5th, with a duration of about 45 days; Restarting gradually in early July; The 80,000 ton/year MDI plant in Dongcao Rui'an began maintenance on July 23rd and is expected to last for about 35 days.

In terms of cost, the recent narrow range sorting and operation of raw materials such as benzene and aniline had limited impact on the polymerization of MDI.

On the demand side, downstream demand was average, and the trading atmosphere was quiet. As the end of the month approached, intermediaries were waiting for the prices of large factories to be released, and their willingness to sell goods was not strong.

Future outlook:

As of July 25th, The MDI market was undergoing consolidation and operation, and the market was waiting for further guidance from the news side. In the short term, there is little change in the supply and demand side, and it is expected that the MDI market will be weaker in the short term.

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