According to the Commodity Market Analysis System of Shengyi Society, the TDI market in East China gradually strengthened and rose sharply in May. At the beginning of the month, the average TDI market price was 10733 yuan/ton. On May 28th, the TDI price was 12266 yuan/ton, an increase of 14.29% during the month and a decrease of 59.52% year-on-year.
The TDI market in East China continued to rise in May, with a sustained strong trend. At the beginning of the month, there were frequent reports of major manufacturers raising their prices. Under the expectation of reduced supply, suppliers actively pushed up prices, while intermediaries raised their prices. The attitude towards downstream market entry is cautious, with a focus on essential needs. In the middle of the month, the implementation of tariff policies boosted market confidence, leading to a rise in supply side prices and an increase in trading volume. At the end of the month, there were frequent reports of price adjustments and limited supply from major factories. At the same time, the maintenance equipment was repaired according to the plan, and the new maintenance date was determined. The replenishment of goods slowed down, further supporting the price increase.
Supply side: High load operation in Wanzhong, Fujian. BASF’s 160000 tons/year TDI plant in Shanghai will undergo maintenance on May 15th, lasting approximately three weeks. The shutdown and maintenance of the 128000 ton/year TDI plant in Tokyo, Japan is expected to last for 2 months. There is a maintenance plan for the 360000 tons/year TDI plant in Fujian on June 5th, which will last for about 45 days.
The upstream toluene market fluctuated and rose in May. From May 1st to 27th, the domestic toluene market price increased from 3590 yuan/ton to 5460 yuan/ton, with a price increase of 1.21% during the period. After the May Day holiday, the crude oil market first fell and then rose, driving the volatile trend of the toluene market. Subsequently, demand improved, leading to an increase in toluene prices.
Market analysis shows that TDI data analysts from Shengyi Society believe that the news of price increases and discounted supply from major manufacturers at the end of the month will further boost market confidence. The supplier has a strong willingness to raise prices, and intermediaries are reluctant to sell at low prices. It is expected that the TDI market will operate strongly in the short term.
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