2010-07-15 [Source: Pudaily]

PUdaily, Shanghai-Since the 2010 Spring Festival, TDI prices have shaped an inverted "V" pattern. The prices touched to the high point in early March but went downhill from late March, lasting for more than four months and market confidence was seriously frustrated.

Domestic TDI supply is very ample in the last six months. Most TDI units are running smoothly and the newly-built facilities of Gansu Yinguang, Cangzhou Dahua and Beifang Jinhua are operating better than expected. Apart from temporary scheduled maintenance, old and new facilities are under high operation rates. Based on the statistics of PUdaily TDI consultant, China outputs in the first half of 2010 (northern domestic and Shanghai plants) reach 190,000 tons, accounting for 66% of the whole turnouts of 285,000 tons in 2009.

For imports, the total imports from January to May are 48,700 tons while total imports in the last six months are estimated to 58,000 tons, accounting for 45% of the total imports of 128,000 tons in 2009.

Along with increasing market occupancy rate for home-made materials, imported quantities are diminishing. At the same time, competitions in Chinese markets become stronger, leading to consecutive decline for USD spot prices in Hong Kong in the first half of 2010. Up to July, spot prices in Hong Kong have tumbled to USD 2300/ton, much lower than that in European and American markets.