SunSirs: The aggregated MDI market continued to decline in July

According to the sample data monitored by SunSirs, the domestic polymeric MDI market price at the beginning of the month was 18,400 yuan/ton, and the price at the end of the month was 16,160 yuan/ton, a decrease of 12.17% within the month and a year-on-year decrease of 19.00%.

According to the price monitoring of SunSirs, in the first half of 2023 (1.1-6.30), there are a total of 136 commodities with a month-on-month increase in the price fluctuation list of bulk commodities, concentrated in the chemical sector (64 species in total) and the agricultural and sideline sector (16 species in total) ), the commodities with an increase of more than 5% are mainly concentrated in the chemical sector; the top three commodities with an increase are butadiene (152.15%), lithium hydroxide (118.46%), and sulfur (89.80%). A total of 95 commodities declined month-on-month, concentrated in chemicals (43 in total) and steel (15 in total), and commodities with a decline of more than 5% were mainly concentrated in the chemical sector; the top 3 commodities with declines were electrolytic manganese (-57.47% ), Magnesium (-46.60%), Glycine (-45.71%). The average rise and fall for the first half of the year was 6.53%.

Summary of domestic polymeric MDI market as of July 29:

At the beginning of the month, the domestic aggregated MDI market was sluggish, and the follow-up of actual orders was limited, and the trading atmosphere in the trade market was deserted. The monthly listings of major production enterprises have been announced one after another. The listed prices in July are mostly stable.

In the first ten days of the month, the domestic polymeric MDI market fell significantly, and the price fell sharply. It was difficult to facilitate the actual order of the terminal, the trade atmosphere weakened, and there were many rumors of low prices. The stalemate in the weak market continues, and the terminal real orders make it difficult.

In the middle of the month, the domestic aggregated MDI market continued to drop, and traders adjusted prices many times, which was bearish on the market outlook. The current sluggish demand is still the main reason for limiting the market price of MDI.

In the second ten days of the month, the atmosphere of the domestic polymeric MDI market is still not good. Although manufacturers have taken measures to reduce the supply to improve the market near the end of the month, the lack of demand has always restricted the rise of the domestic polymeric MDI market.

In terms of raw materials, pure benzene: Crude oil continued to fall, and external news support was weak. Downstream purchases have turned weak, and the price of pure benzene has turned down.

Pure Benzene (upstream raw material)-Polymerized MDI price trend comparison chart:

In terms of aniline, domestic aniline and pure benzene fell weakly, and the cost support of aniline weakened. The downstream delivery of aniline is in a general mood, and the factory’s shipments are lower than expected.

Comparison chart of the price trend of Sunsirs Aniline (upstream raw material)-Polymerized MDI:

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 The /year unit is operating normally; or postponed to June-July for maintenance; Shanghai BASF’s 220,000 tons/year unit is operating normally; or postponed to June-July
Monthly maintenance; Chongqing BASF’s 400,000-ton/year plant is operating normally; Dongcao Ruian’s 80,000-ton/year plant is operating normally.

MDI devices are overhauled and overhauled, and the supply is expected to shrink. However, the downstream demand has been constrained for a long time. SunSirs aggregated MDI analysts predict that the domestic aggregated MDI market will be mainly at a low level.