Price trend

According to the Commodity Market Analysis System of SunSirs, from September 2nd to 6th, the domestic market price of aggregated MDI increased from 17,300 RMB/ton to 17,866 RMB/ton, with a price increase of 3.28% during the period and a year-on-year increase of 4.28%. The domestic aggregated MDI market saw a wide rise during the week, with tight supply on site and suppliers reluctant to sell. Downstream demand also entered the market, resulting in a tight supply of aggregated MDI and rising prices.

Analysis review

On the supply side, the 400,000 ton MDI plant of Wanhua Europe resumed operation on September 3, while the 1.1 million ton MDI plant of Wanhua Ningbo had not yet resumed operation and was in a parked state. BASF's facility in Belgium, Dow's facility in Germany, and Covestro's facilities in Spain and Germany were all operating at low load.

On the cost side, raw material pure benzene: Recently, the pure benzene market had fluctuated and risen. As of September 6th, the benchmark price of pure benzene in SunSirs was 8,534 RMB/ton. Raw material aniline: As of September 6th, the domestic aniline market was experiencing a slight increase. As of September 6th, the benchmark price of aniline in SunSirs was 10,675 RMB/ton. The overall cost of aggregated MDI had not changed significantly.

On the demand side, the demand remained stable and followed up. Recently, the buying momentum had gradually increased, and there had been many inquiries, resulting in stable actual transactions.

Market outlook

It is reported that due to a significant increase in export demand and slower than expected equipment recovery, a large northern manufacturer's MDI distribution channel has sold out its planned source of goods in the first ten days of September. Recently, the MDI market has remained tight, and it is expected that the MDI market will continue to operate to be stronger in the short term.

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