SunSirs: The MDI Market Experienced a Weak Decline This Week (February 17-21)

Price trend

According to the Commodity Market Analysis System of SunSirs, from February 17th to 21st, the domestic MDI market experienced a weak decline, with an average price of 18,666 RMB/ton at the beginning of the week and 18,600 RMB/ton at the end of the week, a decrease of 0.66% during the period and a year-on-year increase of 9.73%. The domestic MDI market experienced a slight decline during the week, with high prices and low transaction volume. Traders accelerated their delivery of goods, increasing the room for negotiation.

Analysis review

On the supply side, the temporary shutdown of the domestic Fujian plant is expected to take about half a month. The maintenance of the 410,000 tons/year MDI plant in Jinhu, South Korea was scheduled to begin on February 9th and last for about a month. BASF's 250,000 tons/year MDI plant in South Korea is scheduled to undergo maintenance starting from February 9th, lasting approximately one month.

On the cost side, raw material benzene: Recently, the benzene market has fluctuated at a high level. Market supply remained high, but there was an increase in future maintenance plans, leading to an expected decrease in supply. Raw material aniline: The price was temporarily stable, with a mainstream price of 9,200-93 00 RMB/ton. Downstream demand was average, and the pressure on aniline enterprises to sell goods has increased, with more room for negotiation. It is expected that the aniline market will maintain a weak operation in the short term.

On the demand side, downstream demand follow-up was average, with a focus on essential needs. Export orders were still acceptable, but demand needed further improvement.

Market outlook

The MDI market was running to be weaker, waiting for demand to rebound. It is expected that the MDI market will digest and organize in the short term.

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