ccording to the Commodity Market Analysis System of Shengyi Society, from May 6th to 9th, the domestic aggregated MDI market prices fell weakly, with an average price of 19866 yuan/ton at the beginning of the week and 19033 yuan/ton on May 9th, a decrease of 1.19% during the week and a year-on-year increase of 22.14%. During the week, the supply of goods from major factories remained tight, but due to the impact of the May Day holiday, downstream demand was light and transactions were low. In addition, the raw material pure benzene market has fallen, and the polymer MDI market has been under pressure and lowered due to the dual bearish trend.
Supply side: On April 20th, some MDI units of BASF Shanghai were shut down for maintenance, with a duration of about 1-2 weeks. The MDI units with production capacities of 130000 tons/year and 70000 tons/year in Tosa, Japan, are scheduled to start shutdown and maintenance at the end of April, with an expected duration of about 40 days.
Cost aspect: Geopolitical tensions have eased, oil prices are under pressure, and pure benzene has been dragged down by oil prices, resulting in a decrease in prices. In the short term, although there has been negative feedback in some downstream areas, the supply and demand pattern of pure benzene is still tight, port inventories continue to decline, and prices still have support.
Demand side: Downstream demand is weak, with fewer inquiries and pressure from intermediaries on their shipments, resulting in price reductions.
Future forecast: The current trend of the aggregated MDI market is weak, and the market is gradually recovering after the holiday, especially with strong demand in overseas markets. It is expected that the aggregated MDI market will consolidate and operate after a decline in the short term.
| http://www.polyvinylalcohols.com |