After the Spring Festival holiday, China's TDI market showed a slight upward trend, mainly supported by the strong supply side. Due to the limited spot inventory of the industry and the expectation that the follow-up supply will gradually tighten, the industry is reluctant to sell at low prices, and the quotation is gradually slightly raised. On February 26, the price of domestic goods in East China was about CNY 17,000 /tonne, and the price of Shanghai goods was more than CNY 17,200/tonne.

After returning after the holiday, Shanghai Covestro took the lead in starting the action and raised the guide price by 500 yuan/ton to 17,300 yuan/ton, revealing the intention of supporting the market. Affected by this, coupled with the low spot inventory of the industry, the quotation is mostly slightly upward. However, downstream factories have not yet fully resumed work, and some factories have postponed the resumption of work to around the Lantern Festival, resulting in the level of raw material consumption not returning to normal for the time being. Therefore, the actual trading volume of the market is relatively small, and some profit-taking orders have a small negotiation and shipment mentality.

However, with Gansu Yinguang's maintenance plan this week, Wanhua Fujian's maintenance expectation next month, and South Korea's BASF's TDI plant temporarily shut down last week, the market expects follow-up supply to be further tightened. Supported by the continuous supply side good news, the industry's quotations remained firm, and the price side remained strong.

Looking ahead, the supply side is still supportive. As downstream enterprises continue to resume work, it is expected that traders will be reluctant to sell at low prices and pull up shipments. In the future, it is necessary to pay attention to the downstream new order procurement status and factory policy.