MDI Market Sees Slight Increase Amid Supply Tightening Concerns
The MDI market saw a slight increase last week according to commodity market analysis by SunSirs. The average price rose from 17,866 RMB/ton on August 3 to 18,066 RMB/ton on August 7, marking a weekly gain of 1.12% and an annual rise of 14.35%. This uptick was largely due to maintenance at major plants in Japan, which led to concerns about supply tightening.
Tosoh's MDI plant in Japan with a capacity of 80,000 tonnes per year underwent maintenance in late July for approximately one month. Another Tosoh plant in Japan is scheduled to shut down for 45 days starting September 1. Wanhua's 1.1-million-tonne-per-year MDI plant at the Yantai Industrial Park will halt production on August 10 for around 45 days.
The market price level for benzene has declined, and expectations of a resumption of shipping through the strait have risen, suggesting easing crude oil supply tightness. Consequently, crude oil prices have fallen, weakening cost-side support for benzene. The recent restart of domestic units that had previously undergone maintenance is expected to alleviate supply tightness.