SunSirs: Supply Was Tight, and the MDI Had Slightly Increased (December 9-13)
December 16 2024 11:15:35 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, from December 9th to 13th, the domestic MDI market operated relatively strongly, with an average price of 18,150 RMB/ton at the beginning of the week and 18,183 RMB/ton at the end of the week, an increase of 0.18% during the period and a year-on-year increase of 14.12%. During the week, the domestic MDI market remained stable and rose, with downstream companies entering the market at a low price and primary demand. The supply side remained tight, which boosted the market and led to a slight increase in MDI prices.
Analysis review
On the supply side, Shanghai Huntsman's 350,000 ton plant underwent maintenance for approximately one month. Shanghai Covestro's 600,000 ton plant underwent maintenance in late November, lasting approximately 25 days. The 400000 ton MDI plant of BASF in Chongqing began maintenance on December 15th and is expected to be maintained for about a month.
On the cost side, raw material benzene: Recently, the benzene market has seen a slight increase. As of December 13th, the benchmark price of benzene in SunSirs was 7,793 RMB/ton. Raw material aniline: As of December 13th, the domestic aniline market was stable. As of December 13th, the benchmark price of aniline in SunSirs was 9,525 RMB/ton. The overall impact of MDI costs was relatively small.
On the demand side, there was insufficient follow-up on downstream demand, resulting in a weak trading atmosphere and being in the off-season of consumption.
Market outlook
The aggregated MDI market was showing a strong trend, with expectations of tight supply in the short term. However, due to demand constraints, it is expected that the MDI market will consolidate .
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