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Home | News |Weekly Polyurethane Market Review (January 13, 2014- January 17, 2014)
Weekly Polyurethane Market Review (January 13, 2014- January 17, 2014)
Updated: 2014-01-20 14:58 Source: PUWORLD share:

Market Review

Effects of closures in downstream sectors increased with Spring Festival approaching. Trends in detail:

Isocyanate

Pure MDI: Negotiations in pure MDI market shrank with Spring Festival approaching. Market has lost its attractions since downstream sectors had limited willingness for stock-up. Till now, mainstream quotations were heard at Rmb 18800-19200/ton in east China, Rmb 19300-19400/ton in south China while Rmb 19300-19500/ton in north China. As to NPU prices, numbers pegged at Rmb 19200-19300/ton in east China, Rmb 19600-19700/ton in south China and north China.

Polymeric MDI: Polymeric MDI market stabilized at weak stance. Downstream most plants were said to shut production around January 20, and some were implementing sporadic stock-up for production demand. In some cases PMDI prices had dropped back to November level.

Later this week, PM 200 was heard at Rmb 16000-16200/ton in east China and north China, while in south China, numbers pegged at Rmb 16400-16500/ton. Shanghai goods were quoted at Rmb 15600-15800/ton in east China and north China, while Rmb 15800-16200/ton in south China. Feedstock from south Korea and Japan was priced at Rmb 15400-15500/ton in east China, Rmb 15500-15600/ton in north China, while Rmb 15900-16000/ton in south China.

Liquefied MDI: Liquefied MDI rolled over at low level. Suppliers took dim views on future prospect under conflict between supply and demand. No stimulus news was heard.

BASF MM103C was quoted at Rmb 20800/ton, Wanhua announced its list at Rmb 21800/ton, Bayer CD-C was mainly quoted at Rmb 20200-20400/ton, Kumho materials were reported at Rmb 20300-20500/ton while NPU at $2600/ton.

TDI: TDI suppliers were active in shipments to ease the pressure from ample inventory, but downstream players had limited demand for raw material. Fujian Southeast Electrochemical has successively completed test run and the output is expected to enter market after Spring Festival. In Shandong and north China, prices for Shanghai goods (with tax) were heard at Rmb 19600/ton while homemade goods (with tax) were reported at Rmb 19200-19400/ton. In east China, homemade feedstock (with tax) was heard at Rmb 19100/ton while price for Shanghai goods (with tax) settled at Rmb 19100-19500/ton. In south China, price for homemade materials (without tax) was said at Rmb 18600/ton while Shanghai goods (without tax) were heard at Rmb 19000-19100/ton.

Polyol

AA (Adipic Acid): There were very few deals closed this month as most downstream factories stopped manufacturing in mid January. Raw material benzene still firmed at a high level but buyers surely don’t want to purchase at a high rate. In terms of adipic acid manufacturing factories, they will probably maintain a stable operating rate during Spring Festival as they want to produce more goods in advance and try to lift price after the holiday. However there were different voices heard among traders.

Till now, in east China, goods from Shandong Haili were heard at Rmb 10600-10900/ton while cargoes from Liaoyang Petrochemical were quoted at Rmb 12000-12300/ton. In south China, quotations from Shandong Haili were settled at Rmb 10600-11000/ton while goods from Liaoyang Petrochemical were quoted at Rmb 12800-13000/ton. In north China, materials from Shandong Haili were reported at Rmb 10600-10900/ton while goods from Liaoyang Petrochemical were priced at Rmb 12000-12200/ton.

BDO: Resellers were cautious when offering quotations as supplies presented stable and demands showed mediocre. Most closed deals were supported by rigid demands.

In east China, spot materials were heard at Rmb 13200-13400/ton (small order, by acceptance) and Rmb 13000-13200/ton (small order, by cash). In south China, bulk goods were heard at Rmb 13300-13550/ton (by acceptance) while drummed goods at Rmb 14000-15000/ton. For import goods, restricted by weak demands, most importers were busy with contract orders and there were no quotations heard in spot market. Downstream buyers mainly purchase homemade goods.

PO (propylene oxide): Vulnerable condition dominated domestic PO market this week. Demands from Shandong and north China decreased as Spring Festival approaches. In addition, import goods arrived in east China port recently, which made insiders more inclined to keep on the fence. Obvious drop was witnessed in Shandong and north China market but eastern China market was relatively quiet. Manufacturers mainly face larger sales pressure in the coming week, which indicates downward trend of market price.

Currently PO prices were heard at Rmb 14800-14900/ton (delivered, by cash) in east China; price in Shandong and north China was reported at Rmb 14500-14700/ton (ex-works, by acceptance).

PPG: Market condition varies in different regions in China this week. Negotiations cooled down in Shandong and north China for lack of supports from raw material PO. Sales presented smooth in east China. In south China, as CSPC plans to undertake 20-day maintenance in March and they need to stock up at the moment, spot goods availability presented tight. Expecting sharp decrease in demand next week, insiders were saying that price might turn weak. Common flexible PPG was heard at Rmb 14900-15100/ton (ex-works, by cash) in Shandong and north China, Rmb 15500-15600/ton in south China and Rmb 15500/ton (delivered, by cash) in east China.

Rigid PPG price fluctuated within a small range this week. Small decrease in PO price in north China eased cost pressure of PPG manufacturers. But PPG producers were still under heavy cost pressure and most of them offered stable quotations. In east China, high-end 4110 was stabilized at Rmb 13300-13500/ton (ex-works, barreled goods) while low-end goods were heard at Rmb 12700/ton. In Shandong and north China, middle-end goods kept at Rmb 12800/ton (ex-works by acceptance), while high-end at Rmb 13100-13200/ton. In south China, high end product of 4110 was heard at Rmb 13600-13700/ton and middle-end at Rmb 13000-13200/ton.

Solvent

DMF: As production activity has almost come to an end in downstream industries, DMF sales were blocked. There were only a small amount of deals closed. Till now, goods were quoted around Rmb 5400-5600/ton in east and Rmb 5500-5700/ton in south China.

MEK: MEK market was still operated at low level. Manufacturers down regulate quotations together this week. Some downstream players even leave the market to keep on the fence. Major support comes from rigid demand. Sales pressure of MEK manufacturers became heavier and inventories have already reached a high level, therefore prices in some areas may dip further. Mainstream negotiation price was heard at Rmb 9200-9300/ton in east China and Rmb 9400-9600/ton in south.

Downstream

PU Coating Systems: Orders from end industry decreased and some plants had closed production. In the following week, shut-down activities would increase further. Wet PU coatings were negotiated at Rmb 9500-10200/ton while traded at Rmb 9200-9700/ton and dry goods were heard at Rmb 10200-10900/ton in Jiangsu and Zhejiang. Nominations of wet goods were Rmb 9800-10600/ton and Rmb 10400-11200/ton for dry goods in north China and Shandong areas. Guangzhou and Fujian market quoted at Rmb 9800-10600/ton for wet goods and Rmb 10400-11200/ton for dry goods.

Spandex: Spandex market eyed steady operations and producer kept prudent on raw materials purchasing. Spandex end sectors had been gradually decreasing demand and preparing for production reduction. Till now, 40D and 20D were respectively at Rmb 49000-54500/ton and Rmb 59000-66000/ton.

Sole Resin: Sole resin exhibited prevailing closure and the stance would worse further in the following week. Goods are quoted at Rmb 17000-18000/ton in Jiangsu and Zhejiang while Rmb 17500-18000/ton in Guangzhou and Fujian.

TPU: TPU market continued the insipid performance, and most plants were reducing operation rates to 40%. Orders from downstream sectors failed to increase as expected.

Pure polyester (80A-95A) BG TPU was quoted at Rmb 22,500-24,500/ton while pure EG TPU was quoted at Rmb 17800-18500/ton. Polyester TPU used in cable was quoted at Rmb 25000-27000/ton while that applied in film was heard at Rmb 25000-26000/ton. Polyether TPU used in cable industry was heard at Rmb 37000-38000/ton. Polyether TPU was quoted at Rmb 40000-60000/ton in south China. Manufacturers offer specific price for each order.

 

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