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Home | News |Weekly Polyurethane Market Review (August 13th -August 17th)
Weekly Polyurethane Market Review (August 13th -August 17th)
Updated: 2007-08-21 00:00 Source: share:
Polyurethane industry experienced the ups and downs this week. Products like TDI, propylene oxide, flexible polyol and PTMEG kept the stable trend, in contrast with the upward trend in pure MDI, polymeric MDI and 1,4 butanediol, especially the dramatic increment of  these two MDI products.

Pure MDI: Price for pure MDI climbed smoothly and was closed to stability by the weekend. So far, prices from middlemen in East China have reached RMB33,000-35,000/ton, with small orders dominated the high-end range. In South China, prices for large clients were in the region of RMB33,000-35,000/ton and RMB35,000-38,000/ton for the small clients. A few materials in cupboard have been concluded mainly with small clients. RMB price for suppliers stood at RMB25,800-26,500/ton and Yantai Wanhua had no intention to change their prices. As to the USD quotation, importing price for middlemen were about USD2,800/ton with the highest price at USD3,100/ton.
Polymeric MDI: Domestic polymeric MDI prices went up steeply this week. Due to the accidents arisen from Shanghai Caojing’s trial operation, market supply in August and September is not quite large. Coupled with the shutdown in Nanyang NPU and maintenance plan of Yantai Wanhua in September, the market appeared tight this week for both middlemen and downstream manufacturers, who were hasty to make the enquiries. With continuous high quotations, there was a heavy atmosphere of cutting back on sales near the weekend. Most adopted the wait-and-see attitude instead of making nominations and concluded the deals mainly with the loyal clients (with reduced amounts). Insiders are quite confident with the future market and take the seek-and-stockpile action.
So far the regional price gap has been small. Brands were not working now and quotations seemed so confusing. Current mainstream quotations were in the range of RMB26, 500-27,500/ton with the high-end quotation at about RMB28,000/ton.

TDI: Domestic TDI has said goodbye to the fluctuated trend and rolled into the short-term stability.
East China market was quite mediocre the whole week. Downstream sector was reluctant to receive the relatively higher quotations. Coupled with the rare supplies on the whole, market price rolled into stability from the slight drop in early week. By the weekend, mainstream market quotations were in the range of RMB45, 000-45,500/ton but scarce transactions have been heard.

Quite a lot of materials have arrived early week, causing more TDI materials in South China market, which contributed to the price decrement to some extent. In mid week, prices for TDI picked up and market remained in the stability afterwards. In Guangdong region by the weekend, mainstream market prices without receipt were in the scope of RMB44, 000-45,000/ton and RMB45, 500-46,000/ton with receipt. In Fujian, relatively abundant materials gave birth to the lower market prices. The mainstream market quotations without the receipt were RMB43,500-44,000/ton.

In early week, Gansu Yinguang has raised the arrival price in North China. Its TDI price in North China has reached RMB44, 000/ton (delivered) but prices from other TDI suppliers remained unchanged. Factory price s quoted by Shanxi Bluestar were at RMB45, 000-45,500/ton and RMB45,000/ton for Yantai Juli. From then on, TDI market in North China continued the stable trend with minor price change.

Adipic acid: Adipic acid market was slack this week with shrunk conclusions. Quotation inquiries reduced noticeably in such an inactive market. Mainstream market conclusion level kept calm and some individual low-end materials at about RMB17,500/ton could be heard. Although such a price level has not been adopted as the mainstream level, it has cast negative repercussion on the market. Supply tightness of pure MDI will not been released even by September, which will influence adipic acid synchronically. Thus traders began to sell goods at low levels under the high pressure of costs and capital. 

Its cash prices in current East China market were in the range of RMB17, 500-17,700/ton with honored conclusion prices at about RMB17,800/ton and about RMB18,000/ton for the small tonnage. In South China market, mainstream cash conclusion prices were at RMB17, 600-17,800/ton, RMB17, 800-18,000/ton in acceptance and  RMB17,800/ton for larger honored wholesale orders. No transactions at RMB17,500/ton have been concluded.
1,4 butanediol: 1,4 butanediol market was relatively calm with slight increment this week. Mainstream conclusion prices in domestic bulk market were in the scope of RMB18, 800-19,200/ton (in cash for the low-end and in acceptance for the high-end), a little hike compared with last week. Due to the relatively nervous offers from suppliers, traders have the difficulties in sourcing in China. Some small orders had the quotation up to about RMB19, 800/ton. As to the imported market, quotation for bulk materials increased compared with last week. Market suppliers had the intention to offer the quotations at RMB19,800/ton and RMB20,500-22,000/ton for RMB market quotations.
On supply side, bulk 1,4 butanediol by Sichuan Tianhua were quoted by RMB200/ton to about RMB19,200/ton, 2000ton of which arrived on this Tuesday. Shanxi Sanwei kept its supply in bulk at RMB18,500-18,800/ton with restraints in first part of the week until Thursday when the quotation were  raised by RMB500/ton to RMB19,000-19,300/ton. Now, it has returned to the healthy supply. 75ktpa 1,4 butanediol plant of GACIA in Saudi Arab has been offline for about three-week turnaround. In addition, another 2000 ton materials in bulk will also arrived on this Friday. Regarding Taiwan, Nanya and Dairen have raised their USD quotation by
USD2, 300/ton and USD2,200/ton respectively. Also USD quotation for Lyondell has risen to above USD2,000/ton.
Propylene oxide: Domestic propylene oxide market remained stable this week without price changes.

There was nearly no change in domestic propylene oxide suppliers’ factory prices. Factory prices quoted by Jinxi Chemical was at RMB13,200/ton,RMB13,000/ton for Tianjin Dagu and RMB13,000/ton for Shandong Binzhou Chemical. Market prices for CNOOC_Shell in East China stoos at RMB13, 300/ton (delivered). However, on the other hand, influenced by the price hikes of propylene and liquid chlorine, which have reached RMB10, 500/ton and RMB1, 700-1,800/ton respectively, domestic propylene suppliers were faced with more severe pressure from  costs increment.

In East China, delivered mainstream market prices were at around RMB13, 200-13,300/ton and RMB12,900-13,000/ton in North China.

Flexible Polyol: Domestic flexible polyol market was still calm this week with no apparent changes.
Supply tightness and high prices in TDI sector have attributed to a depressed foam market in the downstream with quite low operation rates. This has reduced the market demand of flexible polyol and left domestic suppliers in high sales pressure. Under such a circumstance, they had no choice but to keep stable factory prices.
Mainstream market prices in North China were in the region of RMB13,000-13,100/ton, RMB13,000-13,200/ton in East China and RMB13,100-13,300/ton in South China.

DMF: DMF market was generally flat this week with delivery price of the traders in East China at RMB6, 400-6,700/ton. Factory prices for most suppliers were around RMB6, 200/ton with a few concluded at RMB6,400/ton. Domestic materials in South China were quoted at RMB6,600-6,800/ton (delivered) and most quotations by suppliers in South China were around RMB5,800-6,000/ton.
USD market remained stable with quotations from Sumsung in Korea at USD760/ton in bulk. There was no quotation from MCC at the time.
MEK: Domestic butane market climbed up at a smooth rate. Most manufacturers were waiting to see the market. Market conclusions seemed to be plain with the calm attitudes of the middlemen. Current prices in Changzhou were RMB9, 800-9,900/ton, RMB9,700-9,900/ton for Zhangjiagang, RMB9,700-9,800/ton for Ningbo and RMB9,900-10,000/ton for Wenzhou. Prices in South China were at RMB10,100-10,400/ton and RMB10,000-10,300/ton in North China. Due to the absence of a large quantity of materials, prudent attitude is suggestive in the future market.

Sole resin: Domestic sole resin market remained stable on the whole. With a view to current raw material prices, adipic acid was relatively stabilizing at RMB18, 000/ton. However, tight supply of pure MDI has contributed to a price surge with retailed one closed to RMB32, 000-34,000/ton, which certainly would contribute higher pressure to the costs for sole resin( pure MDI increased by RMB1,000 with about RMB300 up in sole costs). When the strong season for sole is coming, it is of high possibility for price increment under the cost pressure.

Mainstream market prices in East China were at about RMB20, 800-21,300/ton at present. Prices in South China were at about RMB21,000-21,500/ton with mainstream factory prices at about RMB21,000/ton.

PU coating system: Market for PU coating system was relatively stable this week. With the influence from price hike in pure MDI, some regional PU coating manufacturers have the intention to raise the price for PU coating system, while no actual action has been taken. The general operation rates for manufacturers were about 50-60%. With the influence from pure MDI supply, current operation rates can not give a complete reflection of the downstream growth.
Spandex: Recently, most domestic manufacturers have reduced their inventory by adjusting their production and sourcing the exporting volume. Supplies of all the grades were sufficient with the mainstream prices for 20D at about RMB125,000/ton and 40D around RMB75,000/ton. In downstream sector, both yarn and plait had relatively good operations with the increased demand. However, there was no apparent increment in circular machine’s conclusion. During the short term, spandex market would be mainly on the adjustment at the lower level.
Price-cut is so common for the depressed manufacturers. Nevertheless, more worrisome is added to the volatile downstream market. Although most manufacturers have some orders at hand, they also have to reduce their materials so as to cut the cost loss to the minimum. Thanks to the great effort and coordination of most manufacturers, downstream manufacturers have recovered to some extent. Spandex market is predicted to be stable and some brands might have their prices adjusted slightly.


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