According to the Commodity Market Analysis System of Shengyi Society, the domestic aggregated MDI market has been declining since June, with an average price of 16333 yuan/ton at the beginning of the month and 15933 yuan/ton on June 19th, a decrease of 2.45% during the cycle. In June, the market was mainly dominated by supply and demand. Starting from the beginning of the month, major factories in Shanghai completed maintenance and began to restart. Fujian Wanhua began maintenance on the 5th. The coexistence of market maintenance and restart, relatively sufficient supply of goods, coupled with weak performance on the demand side, has led to a gradual decline in the aggregated MDI market due to strong supply and weak demand. Starting from mid June, large factories in the north have reduced their operations, showing a clear willingness to raise prices. The market has stopped falling and pushed up, but due to demand constraints, the increase is limited.
On the supply side, BASF and Huntsman in Shanghai have completed maintenance and restarted production. Fujian Wanhua’s 800000 tons/year MDI unit and 360000 tons/year TDI unit were shut down for maintenance on June 5th, lasting approximately 45 days. The MDI plant in Jinhu, South Korea (200000 tons/year) will be shut down for maintenance at the end of May, with a duration of approximately one month.
Future forecast: The current aggregated MDI market is constrained by demand and faces significant resistance to further growth. It is expected that the aggregated MDI market will operate narrowly in the short term and closely monitor the progress of enterprise maintenance and changes in market supply and demand.
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