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Home | News |Weekly Polyurethane Market Review (August 20th ---August 26th)
Weekly Polyurethane Market Review (August 20th ---August 26th)
Updated: 2007-08-27 00:00 Source: share:
Pure MDI and TDI performed significantly in polyurethane industry. Tightness of pure MDI exerted influence on adipic acid market and the downstream operation rate. Details are disclosed as follows:Isocyanate
Pure MDI: This week pure MDI supply was still in tightness. Mainstream conclusion prices tended to increase across the nation whilst downstream vied for building up inventories. The market was favorable as inquirers became more. Downstream coatings and sole resin industries climbed but still far from busy season under the pressure from tight supply of pure MDI.
In East China, mainstream quotations were in the range of RMB33000-36000/ton, small deals quoted with high-end at RMB38000/ton. In South China, prices were in the scope of RMB35000-40000/ton. High-end conclusions were mainly made in small deals. Middlemen were grudging in selling and full-container transactions, focusing on small deals. At the end of the week, market price higher than RMB40000/ton was even heard. As to the suppliers, prices were in the range of RMB25800-26500/ton, and USD 2650-2750/ton for foreign imported materials.USD 2750-2850/ton were accepted by middlemen while prices higher than USD3000/ton were also heard.

TDI: Domestic market calmed down to be quiet this week.
In East China, the market was in desolation at the initial week with weak purchasing power downstream in a depressed market. However, when approaching end of the week, TDI market recovered to flourish as inquiries became more due to downstream TDI purchasing to start manufacturing. Till the end of this week, mainstream quotations for Shanghai supplies were hovering around RMB46000-46500/ton and inferior supplies were quoted at RMB45500-46000/ton.
In South China, the whole TDI market was in little change. The market was relatively quite at the initial week while prices dropped subtly caused by the arrival of smuggled goods. Mainstream quotations in the market were in the range of RMB44500-45500/ton (non-invoiced).
In North China, domestic TDI suppliers ran well with steady offerings whilst the whole market was quite. Factory quotations from domestic TDI suppliers kept the same this week. Gansu Yinguang goods were priced at RMB44000/ton when delivered to North China, factory quotations from Shanxi Bluestar were in the range of RMB45000-45500/ton, and RMB45000/ton from Yantai Juli. A few Shanghai-oriented supplies were quoted at RMB46000/ton.

Adipic Acid: This week adipic acid market fluctuated slightly. Conclusion prices descended by RMB300/ton following former softening period. At the end of this week, quotations in East China were in the range of RMB17400-17600/ton and concluded at RMB17300-17600/ton. Conclusion prices in Wenzhou and Fujian regions were RMB17200-17600/ton and some dealers firmed their prices at RMB17500/ton. In South China, conclusion prices were in the scope of RMB17300-17600/ton with cash, and RMB17600-17800/ton with the arrearage. Transactions were sluggish and downstream users mainly purchased pure MDI.
This week prices descended unsteadily which caused worries of market insiders. However, major insiders hold that the future market for adipic acid will not be pessimistic because of approaching busy season of downstream resin industry despite the pressure from the tightness of pure MDI.
1,4-Butanediol: This week BDO market stabilized. Since Sichuan Tianhua sharply increased quotations for bulked goods by RMB500/ton to RMB19700/ton, conclusion prices in the market gradually climbed to high-end and then kept steady. Until this weekend, Shanxi Sanwei (SWGC) greatly elevated quotations by RMB800/ton to RMB19800-20100/ton (low-end was conclusion with cash, high-end was conclusion with the permit of arrearage). Current mainstream conclusion prices for bulk goods were in the range of RMB19500-19800/ton (DEL) due to more inquiries downstream caused by supply tightness and limited supplies were available. As to the import, mainstream conclusion prices for bulk goods were in the range of RMB19800-20500/ton and drummed goods in RMB20500-22000/ton.
As the planned maintenance for BDO facility approaching, suppliers reduced the offerings. Currently, Shanxi Sanwei (SWGC) mainly provided to contractors and downstream GBL and PEMEG. 2000tons bulk goods of Sichuan Tianhua have already arrived last week but still not available substantially due to the later maintenance. The new 60ktpa BDO facility of Taiwan Nanya was now in trial run with 50% operation rate. Normal operation will be realized during the end of August and the initial September.
Propylene oxide: Domestic propylene oxide market continued to keep stabilization. However suppliers in North China were still under great pressure due to dramatic price increment of propylene in Shandong and other regions as well as high prices of liquid chlorine. Suppliers had to keep temporary stabilization because the downstream polyether market was still sluggish. In East China, mainstream prices (DEL) were RMB13200-13300/ton and RMB12900-13000/ton in North China.
This week, the 80ktpa PO unit of Shandong Jinling has come on stream and operated normally.
PPG: Domestic market still kept steady. Downstream demand was weak because foam market was very sluggish with low operation rate due to the TDI effect. Current market prices still kept this level although some domestic suppliers increased quotations but without actual deals concluded.
Mainstream market prices in North, East and South China were respectively in the range of RMB 13000-13100, 13000-13200 and 13100-13300/ton.
DMF: DMF market stabilized this week. In East China, conclusion prices (DEL) were in the range of RMB6400-6700/ton as factory quotations were mainly at RMB6000-6200/ton and some few at RMB6400/ton were also heard.
In South China, current market transactions were unsatisfying. Operation rate for downstream coatings plants was mediocre. Manufacturers didn’t operate at full load due to the supply tightness of TDI despite of the arrival busy season. Current conclusion prices for domestic supplies were at RMB6800/ton with the permit of arrearage, and RMB6500-6600/ton with cash. Domestic supplies were quoted at RMB5800-6000/ton to South China market, and RMB6600-6700/ton (DEL).
MEK: This week market price kept in a steady level. Currently, as inventories in domestic refinery cut down, all the manufacturers hold the wait and see attitude. In East China, market prices were in the range of RMB9700-9800/ton in Jiangsu region due to insufficient inventories and high cost for building up, as well as grudging in selling of traders. Current market prices in Ningbo were RMB9600-9700/ton with unfavorable sales volume despite of high inventories.
Conclusions in South China were mediocre with current prices in the range of RMB 9800-10100/ton and a concentrated arrival of goods.
Sole resin: Domestic market basically kept stable. As to the demand, autumn shoes were ordered earlier this year which hardly pushed operation rate and still at 45%. Current mainstream prices in East China were at RMB20800-21300/ton and RMB21000-21500/ton in South China with quotations from main manufacturers at RMB21000/ton.
Coatings: Domestic coating prices stabilized this week. Increasing operation rate didn’t reflect real demand in downstream leather industry because coating manufacturers mainly purchased pure MDI under the pressure from supply tightness of pure MDI.

Current prices in Wenzhou for coatings with wet technology were in the range of RMB11100-11700/ton, and RMB12600-13200/ton for coatings with dry technology, prices in South China were RMB600-800/ton higher.
Spandex: As pure MDI continued tight supply, downstream demand kept rising. Some manufacturers adopting Japanese polyurethane feedstock had confronted shut-down due to the tight supply of raw materials caused by former unplanned maintenance of manufacturers. Therefore, spandex supply cut down dramatically.
Melt spinning market kept a steady development. Downstream manufacturers purchased steadily, mainstream conclusion prices for 20D were RMB95000/ton. High price of dry spinning products this year lead some yarn manufacturers to seek the alternative ones. According to our information, many downstream manufacturers changed to use melt spinning once if their products’ quality were favorable. But meanwhile, driven by a long-term stimulation of high profit, some enterprises gradually swift expanding production to seek more sale opportunities. Insiders worried the new launched products which were possibly sold at low prices would lead the market in confusion. Nevertheless, current spandex and melt spinning market was still steady.


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