According to the Commodity Market Analysis System of Shengyi Society, the domestic TDI market in East China saw a rebound in gains in August and continued to decline. At the beginning of the month, the average TDI market price was 16666 yuan/ton. On August 29th, the TDI price was 14700 yuan/ton, a decrease of 11.8% during the month and a year-on-year increase of 2.44%.

The TDI market atmosphere in August is quite uncertain. On one hand, there is a continuously tense supply situation. On one hand, high prices lead to low enthusiasm for downstream market entry, with only essential support. The TDI unit of a large factory in Hebei Province is scheduled to be temporarily shut down for maintenance in mid August, lasting about 7 days. Due to tight supply, the Shanghai factory will not accept new orders. The newly built TDI Phase II plant (360000 tons/year) in Wanhua Fujian Industrial Park has been completed and put into operation recently, and has produced qualified products. The duration of force majeure at the TDI factory in Germany has exceeded expectations, and the Shanghai factory has once again lowered its supply to the European market by 10% in China this month. The supplier’s willingness to raise prices remains unchanged, but downstream entry into the market is cautious and there is a shortage of actual orders. The profit market of intermediaries is fast in and out, and under the game of supply and demand, the focus of TDI transactions is constantly shifting downwards.
Supply side: The TDI plant in Yantai will be shut down for maintenance starting from August 19th, with an expected maintenance period of about 40 days.
In August, the upstream toluene was weakly affected by oil prices and supply and demand. From August 1st to 29th, the domestic toluene market price fell from 5570 yuan/ton to 5489 yuan/ton, with a price drop of 1.42% during the period. Affected by the bearish macro trend of crude oil, toluene shows a weak trend.
Market analysis shows that the TDI data analyst from Shengyi Society believes that the current TDI market has experienced a period of decline and the decline is gradually decreasing. As the end of the month approaches, close attention should be paid to the settlement prices of major companies, and it is expected that the TDI market will experience narrow fluctuations in the short term.