According to the Commodity Market Analysis System of Shengyi Society, the domestic aggregated MDI market operated at a high level in October. From October 1st to 30th, the domestic market price of aggregated MDI increased from 18116 yuan/ton to 18283 yuan/ton, with a monthly price increase of 0.92% and a year-on-year price increase of 16.58%.

In the first half of the month, the price of domestic aggregated MDI rose, and the supply of mainstream factories in China was tight. The on-site supply was tight, and suppliers were reluctant to sell at a higher price, while downstream buyers maintained their demand for essential goods.

In the middle and late months, the aggregated MDI market remained stable at a high level, with quiet news from suppliers and traders maintaining a stable shipping rhythm. New order follow-up was weak, slowly consolidating, and the market was operating at a high level of consolidation.

On the supply side, Wanhua Ningbo has been affected by abnormal equipment, resulting in partial shutdown of 1.2 million tons of MDI equipment and current low negative operation. Huntsman’s facilities in the United States and the Netherlands are currently operating at reduced loads, while other MDI factories at home and abroad are maintaining their original levels of equipment. The overall supply of MDI remains relatively stable.

On the cost side, raw material pure benzene: the focus of the domestic pure benzene market has shifted downwards. As of October 30th, the benchmark price of pure benzene in Shengyi Society is 7304 yuan/ton. Raw material aniline: The domestic aniline market has experienced a wide decline, and as of October 30th, the benchmark price of aniline in Shengyi Society is 9100 yuan/ton. Both pure benzene and aniline experienced significant declines, which had a significant negative impact on MDI.

On the demand side, downstream demand remains high and demand follows smoothly. The demand in the export market is relatively acceptable, but with internal stability and external strength, the aggregated MDI market is operating relatively strongly.

Future forecast: In October, with all the positive news on the news front and the constraint of cost decline, the supply side is weak in pushing up prices, and downstream market entry is cautious. Entering November, the peak consumption season has passed and demand has weakened. It is expected that the aggregated MDI market will weaken in the short term.