Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic TDI price continued to decline in July. At the beginning of the month, the average TDI market price was 14,200 RMB/ton. On July 29th, the TDI price was 13,433 RMB/ton, a decrease of 767 RMB/ton during the month, with an overall decline of 5.4%.

Analysis review

In July, the domestic TDI market first fell and then stabilized, mainly due to weak downstream demand, lack of favorable conditions in the market, and stable operation of TDI factory equipment. The supply of goods was sufficient, and the confidence in the trade market was insufficient. Holders of goods continuously lowered their offers to promote shipment; In mid-late July, TDI's overall production declined, and favorable supply conditions began to emerge. The market stopped falling and stabilized, with trading returning to stability. Demand support was weak, and the rebound was weak. The market remained stable until the end of the month.

The upstream toluene market first rose and then fell. As of July 29th, the domestic average price of toluene was around 7,512 RMB/ton, a decrease of 0.38% from the price of 7,540 RMB/ton on July 1st. The trend of crude oil on the cost side was weak, and the support on the cost side was weak. On the supply side, the supply remained tight this week, and the overall inventory of refineries was running at a low level. On the demand side, the downstream procurement intention was low, and the intention to receive goods was insufficient, which had a certain drag on market sentiment.

Market outlook

The TDI data analyst from SunSirs believes that as of July 29th, most factory equipment was running smoothly. Although there are maintenance plans in the later stage, the transmission of positive news from suppliers is slow, downstream demand continues to be sluggish, market trading is weak, and confidence in the market is insufficient. Under the game of supply and demand, it is expected that the TDI market will remain stagnant and consolidate in the later stage, with narrow price fluctuations. Specific attention should be paid to downstream purchasing follow-up.

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