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Home | News |Weekly Polyurethane Market Review (February 24, 2014- February 28, 2014)
Weekly Polyurethane Market Review (February 24, 2014- February 28, 2014)
Updated: 2014-03-03 09:00 Source: PUWORLD share:

Market Review

Stagnancy dominated most domestic PU products market in last week of February. Most insiders were waiting for recovery from downstream demands and announcement of February settlement and March list price. However, price increase was still heard in market of certain product, such as TDI. As downstream markets are still in recovery, despite of a small amount of lifts, most insiders still choose to stay cautious. Trends in detail:

Isocyanate

Pure MDI:  Pure MDI market remained stable this week. Early this week, some traders tried to lift prices, but downstream buyers showed no interest in buying raw material at high price. In addition, Wanhua still hasn’t announced its settlement and list prices, which dragged traders’ enthusiasm down. High raw material inventory in downstream factories also led to weak trading sentiment.

In east China, mainstream quotation was heard at Rmb 19000-19500/ton. NPU and Wanhua quoted at Rmb 19600-19700/ton. In south China, mainstream quotation was heard at Rmb 19200-19700/ton while NPU and Wanhua quoted at Rmb 19800/ton. In north China, mainstream quotation was settled at Rmb 19100-19600/ton while NPU and Wanhua quoted at Rmb 19700/ton.

Polymeric MDI: PMDI market presented stable-to-firmed this week. At the beginning of this week, PMDI suppliers and buyers came to a deadlock with stable supply and a small amount of stock-up activity heard. Then market price was lifted by sharp increase in March list price. Downstream demands are weak at the current high price. Turnovers were supported by rigid demands.

In east China, PM200 from Wanhua was heard at Rmb 17000/ton, goods from BASF were heard at Rmb 16600-16800/ton, goods from Japan and south Korea were heard at Rmb 16400-16500/ton; In north China, PM200 from Wanhua were reported at Rmb 17000-17200/ton, goods from Shanghai sources were reported at Rmb 16700-16800/ton, goods from Japan and south Korea were reported at Rmb 16400-16500/ton; in south China, PM200 from Wanhua kept at Rmb 17000/ton, goods from BASF were heard at Rmb 16700/ton while goods from Japan and south Korea were settled at Rmb 16500-16600/ton.

Liquefied MDI: Condition in liquefied MDI market is similar to that in other PU products with downstream demands kept weak and insiders paid attention to new quotations. Announcement of February settlement price and March list price from Wanhua will to some extent guide market trend. Most goods-holders are very cautious.

BASF MM103C was quoted at Rmb 20800-21000/ton this month with limited goods supplied to the market. Wanhua announced its February list price at Rmb 22600/ton, up by Rmb 500/ton compared to previous month. Bayer CD-C was mainly negotiated at Rmb 20000/ton. Negotiations of Kumho LL and NPU were respectively pegged at Rmb 20000/ton and $2600/ton.

TDI: There were small increases heard in domestic TDI market. Early this week, BASF took the lead in announcing March list price, which was largely lifted compared to February price. Other factories followed this upward trend and announced their quotations successively. Market confidence was then encouraged with more enquiries and deals heard. In consideration of current abundant availability, TDI market will probably keep rosy within a short term, but upward range will surely be limited.

In Shandong and north China, prices for Shanghai goods (with tax) were heard at Rmb 19900-20100/ton while homemade goods (with tax) were reported at Rmb 19400-19500/ton. In east China, homemade feedstock (with tax) was heard at Rmb 19200-19300/ton while price for Shanghai goods (with tax) settled at Rmb 19600-19700/ton. In south China, price for homemade materials (without tax) was said at Rmb 18600-18700/ton while Shanghai goods (without tax) were heard at Rmb 19000/ton.

Polyol

AA (Adipic Acid):  Adpic acid market rolled over this week due to slow recovery in downstream sectors. Haili’s settlement price failed to break the expectation, while Liaoyang Petrochemical shut down production. Adipic acid market was heard as dead as a doornail. As far as now, Haili materials were negotiated at Rmb 10700-10900/ton in east China, Rmb 10800-11000/ton in south China and north China. Xinjiang feedstock was heard at Rmb 10800-10900/ton in east China, Rmb 10900-11100/ton in south China. Goods from Liaoyang Petrochemical were quoted at Rmb 12000-12300/ton in east China and north China, while Rmb 12800-13000/ton in south China.

BDO: BDO market reflected flat performance this week although producers had strong intension for price increase. The new facilities failed to operate at smooth state and as a result had limited influences on overall market supply. However, downstream demand still remained insipid.

Bulk materials were negotiated at Rmb 13500-13650/ton by acceptance in east China and Rmb 13500-13700/ton in south China. Drum goods were heard at Rmb 14200-15500/ton for certain buyers. As to imports, Mitsubishi quoted its February price at $2750/ton with negotiation room remained.

PO (propylene oxide): Propylene oxide this week kept ramping up. In Shandong district, Jinling firstly increased by Rmb 200/ton, followed the other producers. In east China, market at early week remained stable, and then Zhehai Refinery upward adjusted quotations by Rmb 200/ton. Propylene oxide inventory in plant side was still at low level although PPG plants purchased at a hand-to-mouth basis. Market was expected to stably run in the following week.

Till now propylene oxide pegged at Rmb 14100-14300/ton ex-works by acceptance in Shandong and north China, while Rmb 14250-14300/ton delivered by cash in east China.

PPG: Flexible PPG market this week rolled up. Last Friday Gaoqiao Petrochemical raised quotations by Rmb 200/ton, and this week plants in Shandong and north China increased prices further by Rmb 300/ton. Market in south China firmed since Shell controlled shipment due to maintenance, and Fujian Meizhou Bay PPG lowered operation rates due to PO line maintenance. Till now, flexible PPG was heard at Rmb 14400-14600/ton in Shandong and North China, Rmb 14600-14800/ton in east China and Rmb 14800-14900/ton in south China.

Rigid PPG fluctuated with limitation. Upstream PO continued the uptrend and thus some PPG producers successively raised quotations. However, market eyed slow recovery in downstream demand.

In east China, high-end 4110 stabilized at Rmb 12800-13100/ton while low-end goods were heard at Rmb 12400/ton. In Shandong and north China, middle-end goods kept at Rmb 12600/ton, 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: DMF market was restrained by soft demand from end sectors thus players reported insipid negotiation sentiment. It was heard that some traders surrendered part of profit to stimulate shipments. Till now, mainstream trading values pegged at Rmb 5400-5500/ton in east China while Rmb 5500-5600/ton in south China.

MEK: MEK eyed limited movements. Negotiation sentiment was under improvement supported by export market. MEK price slightly rebounded up on account of limited supply from major plants. Till now mainstream negotiation numbers hovered at Rmb 9000-9100/ton in east China and Rmb 9050-9100/ton in south China.

Downstream

PU Coating Systems: Despite of high inventories, PU coating manufacturers were not active in selling goods as they are worn out by current settlement pattern. It was heard that some insiders were working to change current settlement pattern, but we haven’t got confirmation from industry authority.

Wet PU coatings were negotiated at Rmb 9700-10400/ton and dry goods were heard at Rmb 10300-11200/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: Negotiations in 20D and 30D markets presented quite healthy while 40D market was restricted by weak downstream demands. Cotton market operated at above 70% in Zhangjiagang with most factories consuming previous spandex inventory. Circular knitting market was stable in Jiangsu and Zhejiang but sluggish dacron and chinlon market dragged circular knitting price down. Prices for 40D were heard at Rmb 48000-53500/ton while 20D and 30D were heard at Rmb 59000-66000/ton and Rmb 55000-58000/ton respectively.

Sole Resin: Generally speaking, sole resin market was stable. Affected by Wenling event, insiders were cautious. It is heard that there will be updates about follow-up dynamic on 15 March on Wenling event.

Goods are quoted at Rmb 17000-18000/ton in Jiangsu and Zhejiang while Rmb 17500-18000/ton in Guangzhou and Fujian.

TPU: TPU was thinly traded this week as downstream recovery presented rather slow. Although operating rates in downstream markets were lifted, most factories were consuming previous inventories and have little interested in placing new orders. Most TPU factories were dealing with contract orders.

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. 65E pure BG from Baoding Bangtai was negotiated at Rmb 26000/ton while 66 series was heard at Rmb 27000-28000/ton; UT 590 with medium transparency was heard at Rmb 40000/ton while goods with high transparency were reported at Rmb 42000/ton; polyether TPU used in cable was quoted at Rmb 37000-38000/ton. Polyether TPU was quoted at Rmb 40000-6000/ton in south China.

 

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