2022 Asia-Pacific MDI Annual Market Report Upgraded and Launched

Introduction

2022 In the first three quarters, the domestic MDI market trended downward and the amplitude narrowed

Polymer MDI: this year In the first half of the year, due to the continuous spread of the epidemic and prevention and control measures, the “triple pressures (demand contraction, supply shock, and weakening expectations)” of China’s economy increased again, and both supply and demand weakened and declined. The domestic macro economy and the real estate industry are under pressure, and investment projects are cautiously shrinking, which is transmitted to the weak operation of the downstream demand side of domestic aggregated MDI. Affected by this, from January to August this year, the price trend of China’s polymeric MDI market went down. In September, with the seasonal improvement of the demand side and the tightening supply of MDI manufacturers, the price of polymeric MDI stabilized and rebounded, rising slightly. As of the morning session on October 17, the mainstream price of domestic polymeric MDI is about 17,000 yuan/ton, which is about 3,000 yuan/ton higher than the low of 14,000 yuan/ton before the rebound in early September.

Pure MDI: 2022 From January to August, China’s pure MDI market fluctuated in a range. Compared with 2020 and 2021, the price fluctuation of domestic pure MDI this year is relatively small. The price trend of pure MDI is affected by both supply and demand. In late August, as the main downstream factories of pure MDI concentrated on buying goods and preparing warehouses, and delivered volumes, the spot goods of many manufacturers’ brands in the market were generally tight. From September to mid-October, the domestic supply side remained tight, and the pure MDI market price rose steadily. As of the morning session on October 17, the domestic mainstream negotiation of pure MDI is about 21,500 yuan/ton, which is about 3,300 yuan/ton higher than the 18,200 yuan/ton in early September.

Domestic Macroeconomic Status and Prospect

2022The economy in the third quarter of 2019 improved overall compared to the second quarter. Both production and consumption rebounded in July and August, but due to the low base in the same period last year, the domestic epidemic spread again in August, affecting more than 20 provinces and cities across the country, coupled with the impact of high temperature weather and power cuts in some areas, the actual growth was limited. With the support of special bonds and various policy-based financial instruments, the recovery of infrastructure investment accelerated, but real estate investment continued its downward trend, and the growth rate of manufacturing investment slowed down compared with the second quarter.

Looking forward to 2022 Fourth quarter:

Domestic ： 2022 On September 28, 2019, Li Keqiang, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, presided over a meeting to re-deploy, advance and implement the work of stabilizing the economic market in the fourth quarter. It was mentioned at the meeting, “Give full play to the enthusiasm of the central government and the local government… The economy in the fourth quarter is the heaviest in the whole year, and many policies will be more effective in the fourth quarter. We must strengthen confidence, seize the time window and time node, and stabilize the economy. The market expects to promote policy measures to be fully implemented and fully effective to ensure that the economy operates within a reasonable range.” Overall, the recovery of domestic demand depends on the continued effectiveness of policies to stabilize growth and the continuous optimization of epidemic prevention policies. It is expected that domestic sales will maintain a recovery trend, but the recovery may be weaker than expected. Investment will recover moderately, and infrastructure investment may continue to grow rapidly, which will to some extent offset the investment growth pressure brought about by weak manufacturing investment and sluggish real estate investment.

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