The MDI is the main raw material for the PU foam production .Major MDI suppliers successively increased their PMDI list prices for this October. Compared with the prices for this September, up by CNY2,000-3,000/tonne.

September Market Review:

Looking back on September, China’s PMDI market rose and then stabilized, and the overall market kept relatively strong.

In early September, Wanhua stopped trading for distribution. There were few clear quotations of PM200 in the market. And a few offers and negotiations kept firm. Meanwhile, PMDI prices were at low levels in the period, thus the downstream purchasing demand increased. Inquiries and purchases turned active. Besides, some traders sought for buying the dip. Suppliers shipped goods smoothly and PMDI sales increased month-on-month.

In mid-September, Wanhua’s PMDI fixed price increased to CNY 17,000/tonne; besides, Covestro reduced its supply to distribution market because they had well completed a majorty of the sales target of this month as heard from the market, then they raised their weekly guide prices to distribution market continuously. Since downstream manufacturers had stocked up successively, their buying enthusiasm turned weak. PMDI prices stabilized and kept firm, or fluctuated slightly.

In late September, with China National Day holiday approaching, the wait-and-see mood was heavy. Although the trading atmosphere turned weak, traders held optimistic expectations. They became cautious in negotiation, and the overall market offers remained stable.

Demand: As the weather turned cooler, thermal insulation projects in North China resumed construction, and the demands in spray coating and panel sectors increased month-on-month. The demands from industries such as adhesives and home appliances also improved in varying degrees from the previous month.

October Market Forecast: 
Chinese major MDI suppliers raised their list prices for October. After the National Day holiday, Wanhua Chemical’s facility will shut down for maintenance, resulting a significant month-on-month reduction of the overall operating rate in China. And it will not supply goods and give quotation for distribution. In terms of demand, Chinese demand is expected to remain stable in October. Besides, as the incident of Nord Stream gas pipelines leaks spread, its impact on the feedstock supply and production in Europe attracted much attention. It may drive up China’s MDI exports in the fourth quarter. As a result, China’s PMDI market has a relatively strong support in October.