Price trend

According to the Commodity Market Analysis System of SunSirs, the TDI price trend in East China continued to decline. On May 24th, the average market price in East China was 17,500 RMB/ton, a decrease of 7.89% compared to the price of 19,000 RMB/ton on May 18th, and a decrease of 10.26% compared to the beginning of the month.

Analysis review

The domestic TDI market was operating in a weak state, downstream demand was sluggish, and purchasing enthusiasm was average. There were few new orders traded on the market, and there were expectations of an increase in supply side production capacity. The trade market was bearish, and in order to stimulate shipments, TDI offers had continued to decline. As of the 24th, the quotation range for domestic goods in the distribution market in East China was around 17,000-17,300 RMB/ton, while the quotation range for Shanghai goods was between 17,300-17,500 RMB/ton, and he actual order is mainly based on negotiation..

Upstream toluene market was consolidated. As of May 24th, the average domestic price of toluene was around 7,070 RMB/ton, an overall increase of 0.71% compared to the price of 7,020 RMB/ton on May 18th. The international crude oil price rose, and the upstream support for toluene was good. However, the downstream cashing out was relatively weak, and the actual order negotiation was average. During the week, the manufacturer adjusted the quotation based on their own shipment situation, and the trend of toluene fluctuated slightly.

Market outlook

TDI data analyst from SunSirs believes that the supplier's production capacity increased, the bearish atmosphere in the TDI market was obvious, and the trade market had a pessimistic mentality. In order to stimulate shipments, the stock holders’ quotation declined. However, there was limited downstream trading at the terminal, demand for purchasing was insufficient, and the market lacked positive factors, In the short term, TDI will continue to consolidate its weaknesses. Please pay attention to the follow-up situation.

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