The TDI Market Fluctuated Within a Narrow Range Last Week (July 20-24)

Market analysis

The TDI market remained in a stalemate last week. On the supply side, conditions continued to tighten; major producers frequently suspended price quotations and sales, maintaining firm price stances. Conversely, downstream demand remained sluggish with low market engagement; traders adopted a cautious approach, leading to a slight softening in transaction prices.

Supply side: Wanhua's 200,000-ton unit in Xinjiang is undergoing a 25-day maintenance shutdown. Gansu Yinguang has scheduled maintenance to its 150,000-ton unit in early August. One of Wanhua's TDI units in Fujian has experienced an unplanned shutdown.

Cost side: The toluene market has recently been operating at high levels, driven by rising crude oil prices and supportive supply-demand dynamics. Following a sustained rally, the market lacks fresh bullish catalysts, and downstream willingness to purchase at elevated prices is limited; consequently, the risk of a pullback from these highs is gradually mounting. Toluene price increases are expected to slow in the short term.

Market outlook

Analysts at SunSirs believe that, amidst the tug-of-war between supply and demand, the TDI market is currently in a state of consolidation and stalemate; barring any significant improvement in demand, the market is expected to fluctuate within a specific range in the short term.