Update on Chinese Urethane Market
Latest Chemicals News on September 13
The market for propylene in Shandong declined slightly, with a prevailing price of 7,850-7,950 RMB/ton as of September 12. The sellers temporarily have to adjust the offer according to their own inventory and the selling as there is no guidance of news in the market. The short-term market trend depends on the transaction.
As for the market for liquid chlorine, the market in Shandong has remained weak. The prevailing price of the local liquid chlorine is 1 RMB/ton (tank), which makes the manufacturers lose money by subsidizing about 800-1500 RMB/ton.
The Propylene Oxide Market: The domestic propylene-oxide market has remained steady recently. As of the morning of September 13, the cash bulk price for new order for propylene oxide in Shandong and North China was 10500-10600 RMB/ton, with lower price for confirmed order negotiation. The cash bulk price with delivery in East China is 10850-11000 RMB/ton. There is a lack of good news in the market and market participants are generally pessimistic about the market outlook. Therefore, they are expecting a downside risk in domestic PO market.
About 16,000 tons of PO imported from Saudi Arabia reach the port today. According to market information, the imports of PO may be reduced over the next two months due to the impact of hurricanes. In order to ensure a stable supply to the core customers, partial sales will be adopted by the sellers for those imported PO and they are expected to be sold out in three months.
Domestic Polyether Polyols Market: The prices of domestic slab polyols, CASE polyols and HR polyols remain stable on the surface but fall actually. Meanwhile, the prices of POP and rigid polyols remain stable temporarily. Today, the cash bulk negotiation price of common slab polyols in Shandong and North China is 11300-11500 RMB/ton. The prevailing bulk price with delivery of common slab polyols in East China is 11,500-11,700 RMB/ton. The cash bulk price of HR 330N polyols in Shandong and North China is 11,900-12,200 RMB/ton, while the cash drum price in East China is 12,500-12,900 RMB/ton. The cash bulk price of CASE polyols in Shandong and North China is 11,600-12,000 RMB/ton, while the cash drum price in East China is 12,200-12,600 RMB/ton. The cash bulk price of POP2045 polyols in Shandong and North China is 13,300-13,500 RMB/ton, while the cash drum price in East China is 14,000-14,200 RMB/ton. The cash bulk price of POP3628 polyols in Shandong and North China is 13,400-13,600 RMB/ton, while the cash drum price in East China is 14,000-14,500 RMB/ton.
According to market information, Shenhua Group’s polyether-polyols plant Juyuan Chemical, with a capacity of 400kt/year, will start operation next month. Polyether polyols from Saudi Arabia will enter the Chinese market in October and November. Thus the supply of polyether polyols is expected to increase significantly next month. However, as the downstream manufacturers are cautious and place limited orders, the price of polyether polyols may go down further.
The PMDI (Polymeric MDI) market: Wanhua Chemical increases the September PMDI list price for distributors by 6,500 RMB/ton to 35,000 RMB/ton. Wanhua reserves the right to adjust the price at any time. Besides, Huntsman raises the September PMDI list price for distributors by 4,500 RMB/ton to 33,000 RMB/ton. There is tight supply in domestic polymeric MDI and pure MDI market and rigid downstream demand for both goods, with limited confirmed order.
The TDI Market: The latest offer for TDI by Juli Chemistry and Southeast Electrochemical is 40,000 RMB/ton, up 500 RMB/ton from earlier period. The offer made by TDI sellers in East China and South China remains stable, but with limited buy order. As a result, the market ends in a stalemate.