SunSirs: This Week, the TDI Market Is Consolidating at a High Level (August 4-8)

Price trend

According to the SunSirs’ commodity market analysis system, the TDI market in East China remains within a narrow range this week. As of August 8, the average price in East China is 16,666 RMB/ton, compared to the same price on August 4. This marks a weekly increase of 18.2% year-on-year.

Analysis review

The TDI market is consolidating at a high level this week, creating a rather conflicting market environment. On the one hand, supply remains tight. On the other, high prices discourage downstream investors from entering the market, leaving only rigid demand as support. During the week, a major TDI plant in Hebei Province scheduled a temporary shutdown for approximately seven days in mid-August for maintenance. Due to tight supply, a major plant in Shanghai is not accepting new orders. Suppliers remain willing to maintain prices, while downstream investors remain cautious, resulting in a lack of firm orders. This supply-demand dynamic has kept the TDI market consolidating at a high level.

On the supply side: Xinjiang Juli shut down for maintenance on July 16th for approximately 35 days; Gansu Yinguang shut down for maintenance on July 27th for approximately 10-15 days. Hebei Cangzhou Dahua plans to temporarily shut down for maintenance in mid-August for approximately 7 days.

On the cost side: Toluene prices fell, averaging 5,580 RMB/ton at the start of the week and 5,560 RMB/ton at the weekend, a weekly decrease of 0.35%. The toluene market experiences a period of price increases due to supply-side maintenance, but weakened demand lead to a slight decline this week.

Market outlook

TDI data analysts of SunSirs believe that the TDI market will continue to maintain a tight supply situation. Supported by overseas orders, the TDI market is expected to maintain a high level in the short term. Pay close attention to changes in market supply and demand and news.

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