Wanhua Chemical adjust the MDI prices in China
Wanhua Chemical announced on the evening of the 27th, since March 2018, the listed price of the polymeric MDI distribution market in the PRC has reached 24,500 yuan / ton (1,000 yuan / ton lower than that in February) and the direct selling price is 24,500 yuan / ton February price down 1,500 yuan / ton); pure MDI listing price of 31,700 yuan / ton (February price increase 1700 yuan / ton).
After the domestic MDI prices rose sharply in 2017, they started to call back in recent two months. Public information shows that Wanhua Chemical is a leading global MDI with a production capacity of 1.8 million tons of MDI, accounting for 24.5% of the global total production capacity in 2016 and 58.3% of the total domestic production capacity. Its listing price is of strong guiding significance to the domestic MDI market.
Relevant data show that in 2017 the domestic polymeric MDI market prices rose up, the beginning of quote in 21025 yuan / ton, at the end of quote in 27,750 yuan / ton, the overall price sharply increased. In the third quarter of 2017, the domestic aggregated MDI price once rose to 36,000 yuan / tonne from 24,000 yuan / tonne. October 2017 Wanhua Chemical Polymerization MDI listing price as high as 35,000 yuan / ton.
However, since October last year, with the increase of market supply, the bearish atmosphere began to spread, and traders started to take the trouble to buy goods at a low price.
Analyzed by experts, the domestic MDI prices continued to rise in 2017, mainly due to the tight supply in the market and the overseas demand. According to preliminary statistics, the annual output of MDI in China in 2017 was about 1.3 million tons, of which 562,000 tons were exported, an increase of 33%. However, the output of the supply side is still low, but as the Spring Festival has just passed, the operating rate of enterprises is not high and the price of MDI is at a high level. The enthusiasm for stocking on the downstream has not yet been fully mobilized.
However, comparing the average price of 9150 yuan / ton in October 2015, the current price of polymerized MDI 24500 yuan / ton is still at a high level.
In 2018, with annual output of 400,000 tons of Sadara project, annual output of 350,000 tons of Shanghai Lian Heng project, annual output of 200,000 tons Huntsman Netherlands project and Korsault's annual output of 200,000 tons project in Germany, MDI global The pattern of supply and demand will change.
On the other hand, at present, BASF has started to improve MDI equipment in Chongqing, China, and started to build a new steam methane plant to improve the reliability of on-site MDI installations. BASF was the first company to produce MDI in the field in August 2015. Its equipment capacity was 400,000 tons a year and will gradually increase according to market demand. MDI is expected to ease the tight supply and demand, the price is difficult to increase short-term.