Daily Review: Sparse Downstream Inquiries Lead to Quiet and Stable Polymeric MDI Market

On February 6th, the domestic aggregated MDI market was stable and consolidating. The average market price was 13,900 yuan/ton, remaining unchanged from the previous business day. Suppliers' attitude was mainly to stabilize the market, and distributors were cautious about lowering prices. With the Spring Festival approaching, logistics and transportation will soon cease operations, coupled with some downstream manufacturers gradually entering the holiday period, downstream inquiries were limited. Only some small orders for immediate needs were being followed up. Inquiry and buying sentiment in the market was weak, and actual transaction volumes were difficult to increase. Amidst the tug-of-war between bulls and bears, some traders were mainly selling at market prices. High-priced goods were somewhat nominal. Currently, PM200 is being negotiated around 14,000-14,100 yuan/ton, Shanghai cargo is being negotiated around 13,800-13,900 yuan/ton, and imported goods are around 13,700 yuan/ton. Specific prices are negotiable (including tax, barrel packaging, self-priced).

Market Forecast: Downstream factories are gradually entering holiday mode, with most having stopped receiving goods. A small number of holders are still offering prices in the market, but actual transactions are rarely heard of, resulting in low market activity. With industry players leaving the market en masse, the polymeric MDI market is expected to remain stagnant in the short term.