2022 TDI Market Review

The domestic TDI market rose strongly in January. At the beginning of the month, the market continued to rise, and the downstream replenishment was appropriate, and the enthusiasm for inquiries increased. Around the middle of the month, downstream factories began to have holidays one after another, and spot trading gradually became flat. Moreover, due to the continuous increasing market prices, many traders are reluctant to sell at high prices, and the downstream is in conflict with high prices, so that the overall volume of downstream post-holiday stocking is average and concentrated There are fewer cases of single stockpiling. At the end of the month, the market has mostly entered the holiday mode. However, with the wide increase in the listing of Wanhua and BASF, sporadic quotations in the market still increase. Most middlemen are reluctant to sell, waiting for the market after the holiday.

The domestic TDI market continued its strong trend in February, and fell back at the end of the month. After the return of the Spring Festival, the tense spot supply situation at the supply side remains unchanged. The listed prices of suppliers in February are relatively high. Covestro has raised its buyout price several times, and the supply volume is still discounted, which gives positive support to the TDI market. Under the favorable fundamentals, Offers from middlemen are still raised. However, the recovery of the overall downstream demand was not as good as expected, and it was difficult to trade high prices in the market. Around mid-February, the market stopped rising and then stalemate for a short time. In the subsequent market, profit-making orders took the lead, and it was safe to start shipping at low prices, and the price of TDI began to loosen. There is great resistance to high-priced shipments in the market, and mainstream middlemen’s offers have also begun to loosen, and market prices have fallen accordingly.

The domestic TDI market price fluctuated within a range in March. At the beginning of the month, the price of toluene, a raw material, rose sharply following crude oil, and the low quotation of TDI began to adjust. The domestic market stopped falling and began to recover. However, the downstream demand was limited. In the middle and early March, the mentality of traders began to diverge, and some chose to give up profits. Speeding up shipments, coupled with the severe situation of the domestic new crown epidemic, the overall transaction volume of the market is average, and the market transaction price has declined slightly. The pessimistic atmosphere brought about by the new crown epidemic in the middle and late March has subsided. In addition, Covestro’s guidance price has been raised, and the mentality of traders in the market has improved. Prices weakened again.

The domestic TDI market fell weakly in April. During the month, the epidemic factor continued to affect. Although domestic logistics and transportation in many regions were still blocked, and the cargo transportation cycle was slow, the demand was also hit hard by the epidemic. In addition, Wanhua took the lead in the first half of this month to follow the market. The pessimistic mentality of the middlemen is strong, and the shipment is accelerated. Speed, the market trading center of gravity dropped rapidly day by day. However, starting from the middle of the month, with the wide decline in prices, the industry is afraid that the factory will settle a high loss, and the attitude tends to be cautious. better. However, the follow-up factory settlement continues to be distributed along with the market, while the downstream follow-up is not good, and the real orders continue to be low for negotiation.

The domestic TDI market continued to decline in May, and the focus of market trading continued to decline. During the month, the demand-side support was weak, and the support for TDI continued to be weak. Although the epidemic situation improved during the month, it will take time for demand and the recovery of the industrial chain, and there is no obvious sign of improvement on the demand side during the month. However, the settlement price of the factory within the month is mostly lowered according to the market, and the mentality of the middlemen is weak, and they continue to sell goods at a profit. During the month, logistics restrictions in the Shanghai area eased, and a large number of goods from Shanghai filled the market one after another. The market’s spot supply was sufficient, while the downstream demand continued to be weak. Mainly, the focus of market negotiations continued to sink.

June , the domestic TDI market is going up. At the end of May, the monthly settlement prices of BASF and Wanhua successively landed, and middlemen became more cautious. With the convergence of quotations and the high price of raw material toluene, the profits of factories continued to be squeezed, and the market price began to move up slightly. However, the overall downstream demand is still weak, and thee=”text-align:left”>In November, the domestic TDI market fell sharply and fluctuated at a low level. At the beginning of the month, due to the continuous sluggish downstream demand and the spread of the epidemic situation in various places, there were resistances in some areas and downstream demand. The quotations of middlemen continued to make profit, and the market low prices were frequently refreshed. fast fall. In the middle of the month, due to the market price falling to a relatively low level, coupled with news of the TDI factory, the enthusiasm of downstream inquiries increased, the market transaction volume increased slightly, and the cautious attitude of the industry increased. The market has entered a low-level shock mode. However, the buying transactions lacked continuity, and returned to a flat situation after a short-term recovery. The weak demand and the continuous impact of the spread of the epidemic made it hard to be optimistic. Merchants mostly maintained their shipment intentions according to their own conditions. , the focus of market negotiations continued to fall, but in view of the support of suppliers, the overall loosening of spot prices in the market was not large.

In December, the domestic TDI market first fell and then rose. At the beginning of the month, the market continued to be weak, and the focus of negotiations continued to fall. The mentality of the industry is not good, the intention to ship is maintained, but the ability to receive orders from downstream is low, sporadic and small orders are just needed to be maintained, the atmosphere of market negotiations continues to be weak, middlemen are under pressure to ship, and the selection of offers is slightly discounted, and the focus of market transactions continues to shift down. However, starting from the second week, the market rumored that Shanghai Covestro will reduce its load and will carry out maintenance at the end of the month. At the same time, the Shanghai BASF and Wanhua Fujian plants also temporarily shut down for several days due to failures. In the tense situation, middlemen are reluctant to sell, and they have no intention of selling at a low price. The intention of offering is high, and the center of gravity of the market price continues to rise. However, the enthusiasm of the downstream to enter the market is average, and there is still resistance to the high price offer in the market. In addition, under the influence of the epidemic, the labor force in various industries has shrunk, and the terminal demand and production load are relatively light. The demand is light but the supply is still tight, and the price continues to rise.