MDI market is stuck in a short period

The situation in which the off-season MD (isocyanate) began to appear in February of this year is not thin, and the situation of supply and marketing boom may have to come to an end temporarily. The reporter learned from the industry yesterday that after entering March, the MDI market as a raw material for polyurethanes fell into a temporary downturn, mainly because the rise in international oil prices led to the increase in the downstream costs of the chemical industry, which in turn affected demand.

Although MDI prices have been rising slightly since March, the price increase has been caused by the gradual shrinking of transactions. According to data from China National Chemical Network, recent market sentiment is weak, and the market is mostly sporadic, with poor trading volume. As of yesterday, the price of East China's polymerization MDI market was stable. Japan's and South Korea's goods were quoted at 17400-17500 yuan per ton, BASF's and Bayer's goods were quoted at 17800-18,000 yuan per ton, and Yantai Wanhua (600309 shares) was quoted at 18,000 yuan per ton.

According to Chang Yingzhi, a researcher in the chemical industry of China Investment Advisors, as the price of raw material aniline continues to rise, the production cost of MDI increases, and the relevant manufacturers are bound to increase the selling price of MDI in order to ensure their profitability. However, under the background of increasingly high prices, the demand for MDI from the downstream related industries has become dull, resulting in the current poor domestic MDI market.

It is reported that the main raw material for the production of polyurethane products is MDI. At present, the consumption fields of polyurethanes in China are mainly concentrated in the industries such as synthetic leather stocks, sole liquids, spandex, paints, building insulation materials and so on.

“Currently, the operating rate of insulation, slurry and other industries is relatively low, and the demand for raw material MDI in the downstream industry is relatively small. Moreover, the global economic trend is not yet clear, and end product traders are more cautious about the planning of product inventory. The demand for MDI in the downstream industries and end product areas has been very limited, which has made the current domestic MDI market unsatisfactory.” Chang Yuzhi said.

"Upstream pull up, the downstream needs a gradual acceptance of the buffer process, this stage is the stage of self-adjustment of the MDI market." Analyst told reporters.

Nevertheless, all parties are cautious about the long-term prospects of MDI. Industry insiders pointed out that due to the large demand for energy-saving materials in China, the consumption of polyurethane materials in the field of energy-saving insulation will gradually increase. With the rapid development of the polyurethane industry, the demand for raw material MDI will also increase. From the perspective of long-term development, it is expected that the degree of prosperity of the MDI market will increase in the future.

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