China

China PMDI market is gradually rising since early January. The average price for January is estimated to be around CNY 15,500/tonne, increased by 4.2% from that in last January.

From last November, China PMDI market has shown narrow fluctuations, fluctuating within the range of CNY 15,300-16,050/tonne. As of January 25, although PMDI prices have rebounded to CNY 15,600-15,800/tonne, the market still remains historically low.

The PMDI market rising in this January mainly stems from the reduced spot supply from suppliers. Although MDI facilities in Ningbo and Chongqing have just completed maintenance and back to operation, the overall MDI industry operating rate remains low. In addition, imports from Japan have also decreased.

 

Asia Pacific

On January 22, BASF announced that they will increase price for MDI by of $200 per metric ton in ASEAN and South Asia. Then the market price increases in Southeast Asia and South Asia markets, the price in Vietnam being raised to USD 1,850/tonne and in South Asia being raised to USD 1,850-1,950/tonne.

Europe

Recently, the tension in the Red Sea has affected transportation routes in the region. Asian MDI exports to Europe market have been significantly disrupted, with shipped goods being rerouted, lengthened shipping times, or even cancellations of certain orders, according to the market sources in Asia and the Middle East. Meanwhile, owing to scheduled maintenance plans for some MDI facilities in Europe in March, suppliers are tightening supply to local market, resulting in an anticipated increase of around EUR 200/tonne for the PMDI market in Europe.

Will The Trend Continue In February?

Buoyed by the price increases in Asia-Pacific countries and Europe, the market sentiments of some PMDI traders strengthened this week, pushing up local PMDI prices in China. As MDI suppliers gradually deliver previous orders and downstream manufacturers successively complete replenishment before transitioning into holiday modes, negotiations and transactions will gradually diminish in next weeks. Currently, PMDI traders are also transitioning to pre-holiday modes, with subdued trading intentions. It is expected that the PMDI market price may be stable-to-increase, as the PMDI spot inventory in the market remains low at present, as well as the better expectation on the market in March.