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Home | News |Weekly Polyurethane Market Review (May 19, 2014- May 23, 2014)
Weekly Polyurethane Market Review (May 19, 2014- May 23, 2014)
Updated: 2014-05-26 16:33 Source: PUWORLD share:

Market Review

Domestic market remained lackluster for lack of supports from downstream demand. Isocyanate market showed weak while both ups and downs were witnessed in polyol market. Trends in detail:

Isocyanate

Pure MDI: This week, the turnover for pure MDI is low. Quotations remained stable at the beginning of this week as suppliers tried hard to firm prices. By mid May, liquid transportation is prohibited in Shanghai region because of the organization of CICA, which affected local trading sentiment. Approaching month end, most insiders focused on settlement and list price of Wanhua. Generally speaking, PMDI market is still oversupplied.

Negotiations were heard at Rmb 19500-20300/ton in east China, Rmb 19700-20600/ton in south China and Rmb 19600-20500/ton in north China. Feedstock from NPU and Wanhua was quoted at Rmb 20300/ton in east China, Rmb 20400-20600/ton in south China and Rmb 20500/ton in north China.

Polymeric MDI: MMDI market headed to downswing. In terms of demand, white goods demand was comparatively good but the building materials market kept depressed. In terms of supply, the technological reformation of Bayer had little influence on the market which is still in sufficient supply. Bayer price dropped by Rmb 200/ton to Rmb 15200/ton while the NPU price was heard at Rmb 14500/ton. Negotiation price dropped continuously and dragged traders’ confidence down. Pure MDI price will roll over at current low level in near term.

Till now, PM200 was quoted at Rmb 15000-15100/ton in east China, Rmb 15000-15200/ton in north China and Rmb 15300/ton in south China. Materials from Shanghai were priced at Rmb 14600-14800/ton in east China, Rmb 14600-14700/ton in north China and Rmb 15300/ton in south China. Feedstock from South Korea and Japan pegged at Rmb 14500-14600/ton in east China, Rmb 14600/ton in north China while Rmb 14800/ton in south China.

Liquefied MDI: This week, MDI market kept steady. Trading sentiment was quite stable. With most manufacturers dealing with contract orders, negotiation level remained unchanged. However, facing soft demand, middlemen were very cautious when offering quotations. In addition, insiders had no confidence for market prospect viewing current high price level. They were waiting for list and settlement prices to be announced next week.

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. 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. Despite of maintenances, market availability remained ample. Downstream buyers were cautious when place orders and traders were trying hard to promote sales. Viewing slow consumption from downstream sponge industry, TDI market will probably keep soft.

In Shandong and north China, prices for Shanghai goods (with tax) were heard at Rmb 18,000-18,200/ton while homemade goods (with tax) were reported at Rmb 17400-17500/ton. In east China, homemade feedstock (with tax) was heard at Rmb 17300-17500/ton while price for Shanghai goods (with tax) settled at Rmb 17,900-18,100/ton. In south China, price for homemade materials (without tax) was said at Rmb 16,500-16,600/ton while Shanghai goods (without tax) were heard at Rmb 17300-17500/ton.

Polyol

AA (Adipic Acid): Adipic acid market fluctuated within a small range this week. At the beginning of this week, there were only a small amount of deals closed as downstream buyers were resistant to increasing raw material price. In mid week, traders lifted quotations successively supported by strong raw material benzene. But downstream demands were still weak and buyers organized procurement only to meet rigid demand. Insiders were mainly waiting for list and settlement price from Haili.

Till now, goods from Shandong Haili were negotiated at Rmb 10500-10800/ton in east China, Rmb 10600-10900/ton in south China and Rmb 10550-10800/ton in north China. Feedstock from Liaoyang Petrochemical was mainly negotiated at Rmb 11600-12000/ton in east China, Rmb 12200-12400/ton in south China while Rmb 11800-12100/ton in north China. Availability of Xinjiang goods was rather tight in east China. There were few quotations heard in Xinjiang due to plant shutdown happened in this region.

BDO: Sluggish trading sentiment in BDO market forced dealers to try hard to promote sales. As there are new capacities to be released, condition will turn worse as current availability has already beyond ample. More and more low offers were heard. In addition, downstream PBT market remained soft, which means mainstream negotiation price has already fallen below Rmb 10000/ton. More and more shutdown plans were heard under inventory pressure.

In east China, spot materials were heard at Rmb 11700-11900/ton (small order, by acceptance). In south China, bulk goods were heard at Rmb 11800-12000/ton (by acceptance) while drummed goods at Rmb 13000-13500/ton. For import goods, most suppliers were dealing with contract orders. Quotations from Japan Mitsubishi were heard at $ 2500/ton, negotiation room remained.

PO (propylene oxide): This week, PO market remained steady. The terminal sponge industry was in slack season and only offered limited buying orders for PPG. Buyers placed orders on a hand-to-mouth basis. Tight supply condition was eased supported by better sales of port goods. In terms of raw materials, strong propylene will probably lift PO price up. Some manufacturers plan to lift quotations. However, dragged down by weak demand, PO market will possibly keep at current level within a short period.

Currently PO prices were heard at Rmb 13400-13500/ton (delivered, by cash) in east China; price in Shandong and north China was reported at Rmb 13000-13100/ton (by cash) and Rmb 13200-13400/ton (by acceptance, ex-works).

PPG: PPG market presented stable-to-firmed this week. Manufacturers lifted quotations in accordance with strong raw material PO. But new order negotiation condition was gloomy as sponge industry was in its offseason for the moment. Market will keep stable.

Till now, goods were priced at Rmb 13400-13600/ton (bulk, by cash, ex-works) in Shandong and north China, Rmb 13700-13900/ton (by cash, bulk, delivered) in east China while Rmb 13700-13800/ton (bulk, delivered) in south China.

Rigid polyether polyol price kept firmed. Market gained supports from strong raw material PO. In terms of demand, white household appliances market offered stable demands.

In east China, low-end 4110 was reported at Rmb 12300/ton (ex-works, barreled goods), middle-level goods were heard at Rmb 12700-13100/ton (by acceptance). In Shandong and north China, middle-end goods kept at Rmb 12400-12700/ton (ex-works by acceptance), Rmb 12200-12400/ton (by cash) while low-end at Rmb 12300/ton. In south China, high end product of 4110 was heard at Rmb 12800-13000/ton and middle-end at Rmb 12500-12700/ton, low-end goods were heard at Rmb 12300/ton.

Solvent

DMF: DMF market remained weak. Manufacturers organized production as usual in early week. They were facing heavy inventory pressure and there were fierce price competitions among them. Approaching mid week, producers lowered quotations slightly to promote sales and price dipped further at week end.

Till now, mainstream trading values were heard at Rmb 5100-5400/ton in east China while Rmb 5400-5500/ton in south China.

MEK: MEK market presented stable-to-firmed this week. Availability presented rather tight from Lanzhou Petrochemical. Traders firmed quotations. But downstream buyers were resistant to high raw material price and only placed small orders to meet rigid demand. Then Fushun Petrochemical announced maintenance plans, which lifted trading sentiment. Mainstream suppliers up adjust quotations slightly. Despite of limited deals closed, sellers intend to firm quotations.

Mainstream negotiation numbers were heard at Rmb 10100-10200/ton in east China while Rmb 10500-10700/ton in south China.

Downstream

PU Coating Systems: Coatings market was still mediocre. Manufacturers lowered operating rates. Continuous drop in BDO price affected trading sentiment. Insiders were paying attention to outrages against Chinese in Vietnam, trying to figure out whether the incident will affect PU coating market.

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: Trading sentiment in spandex market was stable with most manufacturers trying hard to obtain more orders. There is one downstream factory only executing contract orders restricted by tight cash flow. Low raw material price create a larger profit room for spandex factories.

40D was mainly pegged at Rmb 48000-52000/ton, while 20D and 30D respectively hit at Rmb 59000-65500/ton and Rmb 55000-58000/ton.

Sole Resin: Sole resin market eyed soft performance this week. The shoe makers are meeting with bearish market surroundings. As cost of shoe makers in Pearl River Delta increased rapidly, many foreign companies moved their production bases from China to Vietnam, India and Bangladesh, where cost is lower. Goods are quoted at Rmb 17000-18000/ton in Jiangsu and Zhejiang while Rmb 17500-18000/ton in Guangzhou and Fujian.

TPU: Negotiation sentiment was insipid in TPU market this week with major downstream applications keeping stable demands. The industry is entering weak season now, therefore negotiation price will probably keep at current level.

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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