Methyl di-p-phenylene isocyanate (MDI) prices in China may remain firm or rise further in December, supported by tight supply amid a moderate growth in demand, industry sources said on Wednesday.
Buy-sell ideas for December shipment of polymeric MDI (PMDI) were heard at $1,930-2,000/tonne (?,428-1,480/tonne)CFR (cost and freight) China, market players said.
PMDI prices had been increasing gradually since August, with a net gain of 12% over the past three months, based on ICIS data.
Regional producers Nippon Polyurethane (NPU) and Kumho Mitsui Chemical - the key exporters to China - were mulling a price roll-over or a $50/tonne increase for December PMDI parcels, market players said.
Selling ideas for December lots were heard at $1,980-2,050/tonne CFR China, they said.
Global MDI major, BASF, was inclined to offer material within the same price range but a firm offer was only forthcoming later this month, market sources said.
We do understand that demand is still flat, since the key refrigerator sector is in its seasonal lull. Also, [the] construction sector in northern China has slowed down significantly as winter approaches, said a source at one of the PMDI producers.
However, we have to consider the supply situation, which is still on the tight side due to impending and ongoing turnarounds, he added.
NPU had ramped up production at its 200,000 tonne/year MDI plant in Nanyo, Japan. The plant was taken off line on 28 August to late October for annual maintenance.
Meanwhile, Bayer Material Science (BMS) was due to shut its Caojing-based 350,000 tonne/year MDI plant in end-November for a 45-day turnaround.
Chinese MDI major Yantai Wanhua Polyurethanes, meanwhile, shut its 300,000 tonne/year MDI unit in Ningbo on 16 November for a scheduled turnaround until 10 December. Meanwhile, test runs would be conducted at the company s new 300,000 tonne/year MDI unit at the site.
As the Lunar New Year festivities in China would come much earlier next year on 2-8 February, market players said that MDI demand from appliance manufacturers could strengthen in December and push prices higher.
In the monomeric MDI (MMDI) market, producers were more confident in raising December prices, given tighter supply and peaking demand from downstream shoe, sole, adhesive and coatings sectors, market players said.
Producers were looking at more than $50/tonne increase in December prices, while end-users took to the sidelines to monitor market developments before making a firm bid, industry sources said.
Spandex customers are doing well as well, because previously due to the electricity shortage, spandex orders could not be fulfilled. Many of such eastern China-based end-users were less resistant to price hikes, a regional trader said.
Buy-sell ideas for December MMDI shipments were heard on Tuesday at $2,300-2,450/tonne CFR China, players said. MMDI prices surged 13% in last two weeks of October, netting a gain of 18% over the past two months.
However, buyers argued that supply was not as tight as described by the suppliers as the local major Yantai Wanhua was still amply supplying material to end-users.
($1 = ?.74)
Buy-sell ideas for December shipment of polymeric MDI (PMDI) were heard at $1,930-2,000/tonne (?,428-1,480/tonne)CFR (cost and freight) China, market players said.
PMDI prices had been increasing gradually since August, with a net gain of 12% over the past three months, based on ICIS data.
Regional producers Nippon Polyurethane (NPU) and Kumho Mitsui Chemical - the key exporters to China - were mulling a price roll-over or a $50/tonne increase for December PMDI parcels, market players said.
Selling ideas for December lots were heard at $1,980-2,050/tonne CFR China, they said.
Global MDI major, BASF, was inclined to offer material within the same price range but a firm offer was only forthcoming later this month, market sources said.
We do understand that demand is still flat, since the key refrigerator sector is in its seasonal lull. Also, [the] construction sector in northern China has slowed down significantly as winter approaches, said a source at one of the PMDI producers.
However, we have to consider the supply situation, which is still on the tight side due to impending and ongoing turnarounds, he added.
NPU had ramped up production at its 200,000 tonne/year MDI plant in Nanyo, Japan. The plant was taken off line on 28 August to late October for annual maintenance.
Meanwhile, Bayer Material Science (BMS) was due to shut its Caojing-based 350,000 tonne/year MDI plant in end-November for a 45-day turnaround.
Chinese MDI major Yantai Wanhua Polyurethanes, meanwhile, shut its 300,000 tonne/year MDI unit in Ningbo on 16 November for a scheduled turnaround until 10 December. Meanwhile, test runs would be conducted at the company s new 300,000 tonne/year MDI unit at the site.
As the Lunar New Year festivities in China would come much earlier next year on 2-8 February, market players said that MDI demand from appliance manufacturers could strengthen in December and push prices higher.
In the monomeric MDI (MMDI) market, producers were more confident in raising December prices, given tighter supply and peaking demand from downstream shoe, sole, adhesive and coatings sectors, market players said.
Producers were looking at more than $50/tonne increase in December prices, while end-users took to the sidelines to monitor market developments before making a firm bid, industry sources said.
Spandex customers are doing well as well, because previously due to the electricity shortage, spandex orders could not be fulfilled. Many of such eastern China-based end-users were less resistant to price hikes, a regional trader said.
Buy-sell ideas for December MMDI shipments were heard on Tuesday at $2,300-2,450/tonne CFR China, players said. MMDI prices surged 13% in last two weeks of October, netting a gain of 18% over the past two months.
However, buyers argued that supply was not as tight as described by the suppliers as the local major Yantai Wanhua was still amply supplying material to end-users.
($1 = ?.74)
