According to the Commodity Market Analysis System of Shengyi Society, the TDI market in East China in China experienced a significant decline after rising in February. At the beginning of the month, the average TDI market price was 14000 yuan/ton. On February 26th, the TDI price was 12950 yuan/ton, a decrease of 7.5% during the month and a year-on-year decrease of 25.14%.

In February, the TDI market in East China was greatly affected by the supply side and news. At the beginning of the month, there were continuous positive news from the supply side, and the filling of goods in the market was slow. Mainstream major manufacturers raised prices one after another, boosting market confidence and pushing prices up at high levels. Subsequently, the high prices continued until mid month. In the latter half of the month, due to high prices and compressed profit margins for downstream products, there was a strong resistance to high prices, resulting in fewer actual TDI transactions. Under sales pressure, TDI prices began to decline. The price has fallen to around the beginning of the year, and some downstream companies have entered the market on dips. TDI prices have risen, waiting for market feedback.

Supply side: Fujian Wanhua’s 360000 tons/year TDI plant is operating at medium to high loads. BASF’s 160000 ton/year TDI plant in Lishui, South Korea is undergoing a three week maintenance. The 150000 ton TDI unit of Hanhua in South Korea is undergoing routine shutdown and maintenance for approximately one month.

The upstream toluene market fluctuated within a range in February. As of February 25th, the domestic average price of toluene was around 6571 yuan/ton, a decrease of 0.73% from the price of 6620 yuan/ton on February 1st. Within the month, downstream companies will maintain their essential inventory and actual transactions will be limited. The demand for oil blending industry in Shandong region is still good, driving the market atmosphere to recover. In South China region, due to low inventory, the market atmosphere is good, and the listing prices of main refineries are relatively firm. The overall market is stable, with a slightly strong performance. Later, with the fluctuation of crude oil prices, the sentiment of the toluene market was affected, and the market operated weakly, resulting in a slight decrease in prices.

According to the analysis of the future market, the TDI data analyst from Shengyi Society believes that the current TDI price has fallen to a low level, and the enthusiasm of downstream market entry has improved, indicating a turning point in prices. If the market continues to move smoothly in the future, it is expected that the TDI market will stop falling and stabilize in the short term.