According to the Commodity Market Analysis System of Shengyi Society, the domestic aggregated MDI market experienced a weak decline in October. From October 1st to 29th, the domestic market price of aggregated MDI increased from 14833 yuan/ton to 14300 yuan/ton, with a price drop of 3.6% during the month and a year-on-year price drop of 21.79%.
In early October, mainstream manufacturers lowered prices and traders frequently offered low prices. The messaging platform is relatively quiet, with insufficient support and low downstream demand, mainly consisting of small transactions. The mentality of the industry is relatively pessimistic, and prices continue to decline.
In mid to late October, mainstream manufacturers continued to lower prices, and traders’ quotes followed the market trend. Subsequently, the maintenance plan of major factories was announced, and the prices of traders tentatively increased, leading to an increase in inquiries and a slight improvement in the trading atmosphere. The aggregated MDI market continued to weaken after a slight increase, and the market remained stagnant until the end of the month.
Supply side: Jinhu, South Korea’s 200000 tons/year MDI will undergo maintenance in early September, with a duration of 20-30 days. Wanhua Ningbo has a maintenance plan in November, and the rest of the equipment is running smoothly.
On the cost side, pure benzene raw material: downstream of pure benzene continues to suffer losses, with low enthusiasm for raw material procurement and cautious market sentiment. Combined with weak downstream growth and insufficient new orders from end-users, the pure benzene market continued to decline in October. The aniline market remained strong and rose in October. On October 1st, the market price of aniline was 7750 yuan/ton, and on October 28th, the price was 7995 yuan/ton, with a 3.06% increase during the period.
On the demand side, the downstream peak season is not prosperous, and the silver ten market has ended flat. With strong supply and weak demand, the aggregated MDI market is prone to decline but difficult to rise.
Market forecast: Major factories have maintenance plans in November, and the current market is reluctant to sell at low prices. The supply side is supported, but the demand side is unlikely to improve. It is expected that the aggregated MDI market will fluctuate within a certain range in the short term.
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