How Will the Rising Isocyanate and PO Markets Perform Next Week?
2020-09-15    [Source:PUdaily]

    PUdaily, Shanghai —— Recently PU market has further picked up, and the overall PU composite index is on the rise under the influence of resin index, soft foam index and rigid foam index. The raw material of isocyanate -- TDI, PMDI and pure MDI as well as PO, PPG began to slowly pick up since the end of July. As of September 11, Shandong PO plant quoted at RMB 14,600-14,900/ton, and in East China quoted at RMB 14,800-14,900/ton, in early September these prices have been a record high price since 2016. TDI market in  East China has reached around RMB 18,000/ton. PMDI prices have reached RMB 16,300-17,300/ton. Pure MDI mainstream price is up to RMB 16,800-17,500/ton. As for the next week, whether the market will continue to pick up, or usher in a short adjustment, please read the prediction  by PUdaily.

    TDI: It is expected that the domestic TDI market will fluctuate at a high level next week. At present, the market price has peaked periodically, the periodic advantages have run out, the disadvantages begin to emerge. And next week, those profitable shipments will dominate the market and lead to high price fluctuations, and manufacturers' guide prices are expected to be horizontal mainly, waiting for market adjustment, but after short-term adjustment, the market is still likely to move upward. It is expected that next week market prices will run around RMB 16,000-17,000/ton.

    PMDI: It is expected that the domestic PMDI market will be strong and upward next week. The downstream demand of PMDI is expected to remain in good operation in the near future. As domestic and foreign MDI manufacturers have raised ex-works, it is expected that the PMDI market will be strongly upward next week, with offers remaining firm.

    Pure MDI: It is expected that the domestic pure MDI market will be strong and upward next week. With the gradual improvement in the demand for pure MDI, manufacturers continue to control the goods to support the market. It is expected that the pure MDI suppliers' quotation will be strong and stable next week.

    PO: At present, the market performance of the supply side of PO is still strong, and the inventory of manufacturers is limited. Sinopec Changling is expected to lift the production load this weekend. The maintenance of Hongbaoli plans to last for about half a month. The import of PO is still not expected to be concentrated, and it is heard that the PO plants overseas are planned to reduce the load or be in overhaul in Sept and Oct, so it is difficult to see a large increase in imports. The high level price of PO is still likely to remain. However, risks and pressures are still transmitted from the bottom up. Continue to pay attention to the performance of the consumer side.

    Flexible Foam: The raw material PO is corrected in a high position, and PPG passively picks up. As PPG plants are strongly reluctant to sell, and downstream users take goods carefully based on their demand, the mentality of resistance heats up. The flexible foam market is expected to operate cautiously next week.

    Rigid foam: The cost side of rigid foam has strong support. On the demand side, the wait-and-see mood of the downstream is strong, and they purchase based on rigid demand. It is expected that the rigid foam market will be in cautious correction next week. Continue to pay attention to raw materials and downstream demand.

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