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Home | News |Weekly Polyurethane Market Review (May 4, 2014- May 9, 2014)
Weekly Polyurethane Market Review (May 4, 2014- May 9, 2014)
Updated: 2014-05-12 15:06 Source: PUWORLD share:

Market Review

Demands were soft in traditional offseason. Both ups and downs were witnessed in raw materials market. Isocyanates markets headed to downswing while polyols fluctuates within a certain range. Trends in detail:


Pure MDI: Most pure MDI insiders were riding on the fence this week. Downstream buying enthusiasm was low after Labor Day Holiday and there were limited trading closed. Downstream markets remained lackluster.

In east China, mainstream quotation was heard at Rmb 19500-20000/ton. NPU and Wanhua quoted at Rmb 20300/ton. In south China, mainstream quotation was heard at Rmb 19700-20600/ton while NPU and Wanhua quoted at Rmb 20400-20600/ton. In north China, mainstream quotation was settled at Rmb 19600-20500/ton while NPU and Wanhua quoted at Rmb 20500/ton.

Polymeric MDI: PMDI price softened this week. Producers down regulate list prices sharply after Labor Day Holiday, which resulted in stagnancy in trading sentiment. Traders lowered price viewing mediocre market condition while downstream only placed orders to meet rigid demand.

In east China, PM200 from Wanhua was heard at Rmb 15600/ton, goods from BASF were heard at Rmb 15400-15500/ton, goods from Japan and south Korea were heard at Rmb 15300-15400/ton; In north China, PM200 from Wanhua were reported at Rmb 15600-15700/ton, goods from Shanghai sources were reported at Rmb 15400-15500/ton, goods from Japan and south Korea were reported at Rmb 15300-15400/ton; in south China, PM200 from Wanhua kept at Rmb 15700/ton, goods from BASF were heard at Rmb 15400-15600/ton while goods from Japan and south Korea were settled at Rmb 15400-15500/ton.

Liquefied MDI: Trading sentiment in liquefied MDI market was quite stable with mainstream negotiation level heading to upswing.

BASF MM103C was quoted at Rmb 21800/ton this month with limited goods supplied to the market. Wanhua announced its May list price at Rmb 23900/ton, up by Rmb 200/ton compared to previous month. April settlement price of the manufacturer was reported at Rmb 22000/ton. Bayer CD-C was mainly negotiated at Rmb 21500/ton. Negotiations of Kumho LL and NPU were respectively pegged at Rmb 21500/ton and $2750/ton.

TDI: Weakness dominated TDI market this week as downstream sponge industry enters its offseason. Buyers in that industry were cautious when buying raw materials. Meanwhile, supplies were still ample, causing high inventory pressure for TDI producers.

In Shandong and north China, prices for Shanghai goods (with tax) were heard at Rmb 18400-18500/ton while homemade goods (with tax) were reported at Rmb 17500-17600/ton. In east China, homemade feedstock (with tax) was heard at Rmb 17300-17400/ton while price for Shanghai goods (with tax) settled at Rmb 18200-18400/ton. In south China, price for homemade materials (without tax) was said at Rmb 16600-16700/ton while Shanghai goods (without tax) were heard at Rmb 17600-17800/ton.


AA (Adipic Acid): Adipic acid eyed small fluctuations this week. Earlier Shandong Haili upward adjusted its list price by Rmb 300/ton to Rmb 100800/ton, followed middlemen. In the mid week, Shanxi Yangquan Coal restarted its facility and remained operation at low capacity, and downstream demand seemed soft. Approaching weekend, traders were reported of unsmooth shipments and upstream benzene was heard to go up again.

Till now, goods from Shandong Haili were negotiated at Rmb 10200-10500/ton in east China, Rmb 10400-10600/ton in south China and Rmb 10300-10600/ton in north China. Feedstock from Liaoyang Petrochemical was mainly negotiated at Rmb 11800-12000/ton in east China, Rmb 12400-12600/ton in south China while Rmb 11900-12100/ton in north China. Cargoes from Xinjiang sources were heard at Rmb 10600-10800/ton in east China, Rmb 10700-10900/ton in south China and Rmb 10500/ton by cash in north China.

BDO: BDO market presented downturn this week under impact of conflict between soft demand and increasing supply. Market was reported of frequent bargains from downstream players and more enquires for low-priced feedstock. As to manufacturing dynamics, Henan Kaixiang stopped its PBT facility, and Shaanxi BDO Phase II facility were heard of sporadic sales.

Bulk spot BDO was negotiated at Rmb 12,500-12,600/ton in east China, Rmb 12,500-12,700/ton in south China. Contract formulated drum was at Rmb 13,800-14,300/ton. As to imports, Mitsubishi quoted in April at $2500/ton, down by $100/ton compared with last month.

PO (propylene oxide): Propylene oxide presented stable to up this week. During May Day holiday, market softened a bit, but soon kept stable since certain plants increased their quotations. Then, Zhenhai Refinery shut production unexpectedly, which squeezed market supply. Under the circumstance, PO plants pushed prices and were reported of stable shipments. Currently downstream players implemented procurement based on demand, and market was expected to slightly move up in the near term.

Till now, propylene oxide in Shandong and north China was quoted at Rmb 12,400-12,500/ton (ex-works by acceptance) and Rmb 12200-12300/ton by cash. Negotiations in east China pegged at Rmb 12500-12800/ton (delivered by cash).

PPG: Flexible PPG market was reported of sporadic price increases from plants. Unexpected shut-down of Zhenhai Refinery facility made propylene oxide supply tight, stimulating PO prices to go up. However, meeting higher cost but mediocre demand, PPG market would likely to roll over in the near term. Flexible PPG was quoted at Rmb 12800-13000/ton (ex-works by cash) in Shandong and north China, Rmb 13100-13400/ton (delivered by cash) in east China and Rmb 13000-13200/ton delivered in south China.

Rigid PPG market presented stable to firm this week in terms of negotiations. Demand exhibited mediocre and could be lighter due to seasonal reason. Downstream plants had completed stock-up in previous days and now were mainly consuming inventory. In east China, middle-end at Rmb 12100-12400/ton while low-end goods were heard at Rmb 11000/ton. In Shandong and north China, middle-end goods kept at Rmb 11800-12000/ton by cash, while low-end at Rmb 11100/ton. In south China, high end product of 4110 was heard at Rmb 12500-12600/ton , middle-end at Rmb 12200-12300/ton while low end at Rmb 11100/ton.


DMF: DMF market rolled over at weak stance this week. Impacted by end industry, demand was limited and traders lacked confidence. In the mid week, Shaanxi Xinghua and Luxi Chemical restarted production successively after maintenance, thus forced market into glut situation again. Bargains from downstream sectors prevailed. Under the circumstance, major producers mostly cut down operations.

As far as now, mainstream trading values pegged at Rmb 5200-5500/ton in Jiangsu and Zhejiang, while Rmb 5450-5550/ton in south China.

MEK: MEK market showed stable to up tendency after May Day holiday. It was heard that Fushun Petrochemical had nothing for selling in East China market, while tight in Ningbo area. Lanzhou Petrochemical increased its quotations in east China to Rmb 9700/ton, followed the Jiangsu market. In south China, market kept stable while downstream players showed a little bit resistant to high cost.

Till now, mainstream negotiation numbers were heard at Rmb 9850-9900/ton in east China and Rmb 10000-10200/ton in south China.


PU Coating Systems: Coatings market remained stable. As end-user producers are getting less and less orders, their demands for raw materials declined as well. End-users insiders are facing several major challenges such as increasing labor costs, high energy conservation and emission reduction requirements, tenser international competition, which means that end-user industries need to speed up in upgrading to survive the industrial reshuffle.

Wet PU coatings were negotiated at Rmb 9300-9700/ton and dry goods were heard at Rmb 9800-10200/ton in Jiangsu and Zhejiang. Nominations of wet goods were Rmb 9500-10100/ton and Rmb 10000-10700/ton for dry goods in north China and Shandong areas. Guangzhou and Fujian market quoted at Rmb 9500-10100/ton for wet goods and Rmb 10000-11000/ton for dry goods.

Spandex: Spandex manufacturers presented stable and are maintaining a high operating rate. Despite of weak overall demands, orders from large spandex factories were still steady. But spandex market was relatively weaker compared to last year. Some spandex downstream factories were tight in cash flow and only place orders to meet rigid demand. In addition, it increases pressure for spandex producers to collect money. 40D were traded at Rmb 48000-52800/ton, 20D were negotiated at Rmb 59000-65500/ton and 30D were dealt at Rmb 55000-58000/ton.

Sole Resin: Sole resin market was stable with steady operating rate and flat sales. Shoe exports in our countries declines as those in Vietnam increases. Major reasons are still increasing costs in labor and raw materials.

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

TPU: Mainstream negotiation level kept at previous level. There were no significant improvement in end-user demands and most producers were busy with long-term 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 40000-60000/ton in south China.


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