A latest research paper from KGI Securities China said that demand for MDI increased sharply in 2010, driven by the surging exports in automobile, home appliance and textile industries. And according to customs data, in the first half of this year, China MMDI net imports growth rate arrived at 85% year-on-year. It is predicted that consumption volume will reach nearly 600,000 tons, up 40% year-on-year.
However, as seen from recent market condition, MDI demand slipped down somewhat. Downstream refrigerator and freezer industries stepped into slack, and automobile industry which faced high inventory also tended to cut down its production, thereby demand for PMDI declined. MMDI downstream sectors kept low operation, with sole resin and PU coatings plants running at 40-50% rates while TPU industry operated lower. On account of electricity control at Zhejiang province, spandex operation also lingered low lever. The waning demand has caused major MDI producers down revise their operating load. Take Wanhua for example, its plant at Ningbo site has been running at 70% while in the first half it ran at 90% rates. At a time when raw materials value constantly riding higher, prices of MMDI and PMDI remained flat, and demand into the second half of the year is hard to rebound, thereby MDI industrial profit in the second half of this year is estimated to decline somewhat compared with first-half.
However, as seen from recent market condition, MDI demand slipped down somewhat. Downstream refrigerator and freezer industries stepped into slack, and automobile industry which faced high inventory also tended to cut down its production, thereby demand for PMDI declined. MMDI downstream sectors kept low operation, with sole resin and PU coatings plants running at 40-50% rates while TPU industry operated lower. On account of electricity control at Zhejiang province, spandex operation also lingered low lever. The waning demand has caused major MDI producers down revise their operating load. Take Wanhua for example, its plant at Ningbo site has been running at 70% while in the first half it ran at 90% rates. At a time when raw materials value constantly riding higher, prices of MMDI and PMDI remained flat, and demand into the second half of the year is hard to rebound, thereby MDI industrial profit in the second half of this year is estimated to decline somewhat compared with first-half.
