SunSirs: The MDI Market Falls Slightly This Week (October 13-17)

Price trend

According to the SunSirs commodity market analysis system, the domestic MDI market saw a slight decline from October 13th to 17th, with the average price at the start of the week reaching 14,633 RMB/ton and the weekend price reaching 14,500 RMB/ton, a 0.91% decrease over the week and a 20.36% year-on-year decline. The MDI market performed generally during the week, with major manufacturers lowering prices and traders offering low prices. News was relatively quiet, support was insufficient, and downstream demand was sluggish, with transactions primarily consisting of small orders. Industry sentiment remained pessimistic, and prices continued to decline.

Analysis review

On the supply side, South Korea's Kumho 200,000 tonne/year MDI plant was undergoing maintenance in early September, lasting 20-30 days. Wanhua Ningbo also has scheduled maintenance in November, with the rest of its units operating smoothly.

On the cost side, the benzene market fell weakly this week, the contradiction between supply and demand intensified, domestic benzene inventory remained high, and downstream industries such as phenol and aniline were generally in a loss-making state. Only caprolactam maintained rigid procurement supported by textile demand, and the weak fundamentals are difficult to change.

On the demand side, the downstream market is not prosperous during the peak season, and the market conditions have not improved significantly. Under weak fundamentals, the MDI market is unlikely to improve.

Market outlook

Currently, the supplier's production is stable and the supply is replenished steadily. With the news being cold and demand being weak, it is expected that the MDI market will maintain a weaker trend in the short term.

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