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Home | News |Weekly Polyurethane Market Review (February 17, 2014- February 21, 2014)
Weekly Polyurethane Market Review (February 17, 2014- February 21, 2014)
Updated: 2014-02-24 17:25 Source: PUWORLD share:

Market Review

In mid February, polyurethane raw materials markets were back on the recovery pathway. Certain markets were reported of price increase on account of unstable supply. Trends in detail:

Isocyanate

Pure MDI: The expected large demand actually did not show up at the opening of this week, which restrained market sentiment. Downstream players mainly kept on the fence.

Till now mainstream negotiation numbers were heard at Rmb 19000-19500/ton in east China, Rmb 19300-19600/ton in south China and Rmb 19300-19500/ton in north China. NPU materials were quoted at Rmb 19600-19700/ton in east China, Rmb 19700-19800/ton in south China while Rmb 19800/ton in north China.

Polymeric MDI: Polymeric MDI list prices were upward adjusted thus negotiation numbers kept at high place. However, as downstream demand into materials failed to warm up and players were resistant to high quotations.

PM 200 was negotiated at Rmb 16600-16800/ton in east China, Rmb 16700-16800/ton in north China and Rmb 16800/ton in south China. Shanghai goods were quoted at Rmb 16300-16500/ton in east China, Rmb 16400-16500/ton in north China and Rmb 16500/ton in south China. Feedstock from South Korea and Japan was announced at Rmb 16200-16300/ton in east China, and north China, while Rmb 16300-16400/ton in south China.

Liquefied MDI: Liquefied MDI suppliers kept prudent on order negotiation when meeting with soft demand. Market was expected to keep the flat stance in the near term.

As to February prices, BASF MM103C was quoted at Rmb 20800-21000/ton with limited availability. Wanhua announced its list price at Rmb 22600/ton while settlement at Rmb 20500/ton. Bayer CD-C and Kumho LL were mainly negotiated at Rmb 20000/ton. NPU materials settled at $2600/ton.

TDI: TDI market stalemated this week with demand recovering slowly. Marketers were mainly waiting for the announcements of settlement prices. Market was expected to remain the same in the near term.

Homemade goods were negotiated at Rmb 19200-19400/ton in Shandong and north China, Rmb 19100-19200/ton in east China and Rmb 18600-18700/ton (without tax) in south China. Shanghai goods were heard at Rmb 19600-19700/ton in Shandong and north China, Rmb 19500-19600/ton in east China, and Rmb 18900-19000/ton (without tax) in south China.

Polyol

AA (Adipic Acid):  Small fluctuation dominated adipic acid market this week. Early this week, as downstream factories restarted successively, quotations were firmed. However, in mid week, Shandong Hongye started to deliver goods to the market while downstream procurement didn’t follow up. Traders were frustrated. Prices began to drop in week end affected by soft end-user industries. Meanwhile upstream benzene prices showed mediocre.

Till now, goods from Shandong Haili were negotiated at Rmb 10700-10900/ton in east China, Rmb 10800-11000/ton in south China and Rmb 10800-11000/ton in north China. Feedstock from Liaoyang Petrochemical was mainly negotiated at Rmb 12000-12300/ton in east China, Rmb 12800-13000/ton in south China while Rmb 12000-12300/ton in north China. Cargoes from Xinjiang sources were heard at Rmb 10800-10900/ton in east China, Rmb 10900-11100/ton in south China.

BDO: BDO market was in a stalemate this week. Although downstream factories resumed operation after Lantern Festival, their procurement enthusiasm for raw material hasn’t recovered yet. What’s more, some downstream industries even lowered sales price. Soft sentiment in two major downstream PBT and spandex-PTMEG deepened BDO players’ worries. With successive release of new capacity, supplies are expected to increase. Market will probably keep weak if there is no improvement in demands.

In east China, spot materials were heard at Rmb 13450-13600/ton (small order, by acceptance). In south China, bulk goods were heard at Rmb 13500-13600/ton (by acceptance) while drummed goods at Rmb 14200-15000/ton. For import goods, most suppliers were dealing with contract orders. Quotations from Japan Mitsubishi were heard at $ 2750/ton, negotiation room remained.

PO (propylene oxide): Propylene oxide market presented stable-to-firm this week. Market price climbed up early in the week. Price in Shandong and north China increased from Rmb 13700-13900/ton last Friday to Rmb 13800-13900/ton. Price in east China increased to Rmb 13900-14000/ton this Monday. Price growing rate slowed down this week as tight inventory in downstream polyether polyol has been eased. Part of the Shandong factories lifted quotations by Rmb 200/ton on Thursday to Rmb 13900-14100/ton. But downstream buyers were reluctant to place orders at current high level. Raw material propylene and liquid chlorine ran weakly recently, therefore supports from raw material weakened. However, PO inventories were kept at a reasonable level. In addition, Xinyue is planning for a 3-5 day maintenance recently. Most factories are positive about market prospect. There might be some large adjustment in price in east China while Shandong and northern China market will probably keep stable.

Currently PO prices were heard at Rmb 13900-14000/ton (delivered, by cash) in east China; price in Shandong and north China was reported at Rmb 13900-14100/ton (ex-works, by acceptance).

PPG: Flexible PPG market moved up as well in accordance with raw material PO. Early this week, negotiations in Shandong and north China were lifted from Rmb 14100-14300/ton to Rmb 14200-14300/ton while price in east China moved up from Rmb 14400-14500/ton to Rmb 14500-14600/ton. Markets in Shandong and north China ran stably at week end while Shanghai Sinopec Gaoqiao lifted quotations by Rmb 200/ton to Rmb 14600-14700/ton. Downstream buyers were resistant to high raw materials price and mainly placed orders on hand-to-mouth basis. Quotations in south China were firmed. Short maintenance of Fujian Meizhouwan and decreasing supply from CSPC supported market negotiation price at Rmb 14600-14800/ton. Common flexible PPG was heard at Rmb 14200-14300/ton (ex-works, by cash) in Shandong and north China, Rmb 14600-14800/ton in south China and Rmb 14600-14700/ton (delivered, by cash) in east China.

Rigid PPG market maintained stableness this week. Increasing raw material PO and its rosy prospect supported polyether polyol market. Although downstream demands haven’t totally recovered yet, encouraged by raw material PO, many buyers started to place orders and sales in PPG market showed quite smooth. Most PPG manufacturers offer stable quotations.

In east China, high-end 4110 was stabilized at Rmb 12800-13100/ton (ex-works, barreled goods) while low-end goods were heard at Rmb 12400/ton. In Shandong and north China, middle-end goods kept at Rmb 12600/ton (ex-works by acceptance), while high-end at Rmb 12700-12800/ton. In south China, high end product of 4110 was heard at Rmb 12800-13000/ton and middle-end at Rmb 12600-12800/ton.

Solvent

DMF: Trading sentiment in DMF market was mediocre this week. As mainstream DMF factories kept operating rate high, they are under heavy sales pressure. However, downstream demands haven’t totally recovered yet. Quotations in certain regions showed its downward trend. In addition, there are restart plans heard next week, buyers are very cautious when placing orders. Till now, mainstream trading values were heard at Rmb 5400-5500/ton in east China while Rmb 5500-5600/ton in south China.

MEK: MEK market was quite depressed this week. Demands remained soft after the holiday. Manufacturers were under heavy inventory pressure and tried to down regulate selling price to promote sales, which failed to improve sales. Insiders were frustrated. Most of them chose to keep on the fence for the moment. Mainstream negotiation numbers were heard at Rmb 8800-8900/ton in east China while Rmb 8900-9000/ton in south China.

Downstream

PU Coating Systems: Coatings market reflected insipid performance this week since downstream purchasing enthusiasm was under recovery. Wet PU coatings were negotiated at Rmb 9700-10500/ton and dry goods were heard at Rmb 10000-10900/ton in Jiangsu and Zhejiang. Nominations of wet goods were Rmb 9900-10800/ton and Rmb 10800-12200/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: Overall production rates were gradually growing up after Lantern Festival, but markets in Fujian and Zhejiang Xiaoshan were still facing tight capital chain and labor shortage. At the current time spandex producers were on the prudent side although orders from end sectors were stable. Ended on Friday, 20D and 40D were respectively heard at Rm b 59000-66000/ton and Rmb 48000-53500/ton.

Sole Resin: Sole resin market remained at low stance. Some shoe plants were closed currently which resulted in prudent attitude. Till now, sole resin quotations were heard at Rmb 17500-18500/ton in Jiangsu and Zhejiang, while Rmb 18000-18500/ton in Guangzhou and Fujian.

TPU: Production operations lifted this week but producers still remained prudent due to labor cost and flat performance in last year. Meanwhile, TPU supplies would gain further in the near future since the new capacities have not come on stream.

Pure polyester (80A-95A) BG TPU was quoted at Rmb 22,500-24,500/ton while pure EG TPU was quoted at Rmb 18000-18500/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.  

 

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