Chinese MDI Update
May 16, 2022
The Aggregated MDI Market Fell First and Then Rose in April
At the beginning of the month, the domestic market price of aggregated MDI was 19,316 yuan/ton, and the price at the end of the month was 18,800 yuan/ton, a decrease of 2.67% during the month and a year-on-year decrease of 0.40%.
In April 2022, there are 41 commodities in the chemical sector that have increased month-on-month in the commodity price change list, of which 9 commodities have increased by more than 5%, accounting for 8.2% of the monitored commodities in this sector; the top 3 commodities are Formic acid (36.15%), caustic soda (13.35%), flake alkali (9.32%). A total of 66 commodities decreased month-on-month, and 29 commodities decreased by more than 5%, accounting for 26.4% of the monitored commodities in this sector; the top 3 products with a decrease were propylene glycol (-20.05%) and acetic acid (-18.39%). , Glycine (-16.77%). The average change this month was -1.87%.
At the beginning of the month, the domestic aggregated MDI market rose in a narrow range. One of the main reasons is that the logistics and transportation are severely restricted, the traffic at the expressway is congested, and the logistics and transportation costs are soaring. On the other hand, the spot supply in some areas is tight, especially in East China, and the quotations of mainstream traders are gradually rising.
In the first ten days of the month, the domestic aggregated MDI market declined in a narrow range. Traders offer scarce, more bearish outlook. The downstream sees the downturn in the market and increases the inquiring atmosphere, but transactions are rare.
In the middle of the month, the domestic aggregated MDI market continued to decline, mainly due to the low start of terminal enterprises and sluggish demand. Coupled with the high transportation costs, it is difficult to find a car, the regional control is strict, and the transportation is not smooth. Mainstream traders ship with them and talk about it one by one.
At the end of the month, the domestic aggregated MDI market stopped falling and rose, showing signs of recovery. Compared with East China, the logistics and transportation are relatively smooth, and some downstream customers who just need it are active in inquiries, and the demand has increased slightly. Traders are more reluctant to sell and negotiate. As the May Day holiday is approaching, some downstream companies have the intention to stock up, which has contributed to the recovery of the aggregated MDI price.
In terms of raw materials, pure benzene: styrene, caprolactam and other long-term losses, the price of pure benzene continues to rise and lack of motivation. However, new units such as Tianjin Dagu and Maoming Petrochemical styrene entered the market in May, and under the background of the gradual fading of the impact of the health incident and the recovery of the overall downstream consumption, the demand in May is expected to be stronger than that in April.
In terms of aniline, the aniline market fell sharply in April. The main reasons for the downturn of the aniline market are the obvious increase in the supply side, and the continued weakness of the demand side. The cost-side support remains strong, and it is difficult for aniline to fall below the “10,000 yuan throne”.
In terms of enterprises, Yantai Wanhua’s 1.1 million tons/year plant is operating normally; Ningbo Wanhua’s 1.2 million tons/year plant is operating normally; Shanghai Covestro’s 600,000 tons/year plant is operating normally; Shanghai Huntsman’s 380,000 tons/year plant is operating normally Normal operation; Shanghai BASF’s 220,000-ton/year plant is operating normally; Chongqing BASF’s 400,000-ton/year unit is operating normally; Tosoh Ruian’s 80,000-ton/year unit is operating normally.
Looking at the market outlook, it is still difficult for the market to fluctuate greatly after the May Day, and traders may lower their offers due to the large supply of goods at the beginning of the month. Analysts of the aggregated MDI of the business community predict that the domestic aggregated MDI market may enter the sorting stage.