According to the monitoring by the Business News Agency, the domestic aggregate MDI market rose and fell back in March. From March 1 to 31, the domestic aggregate MDI market price fell from 16560 yuan/ton to 15860 yuan/ton, with a price decline of 4.23% during the cycle and a year-on-year decrease of 17.89%.

At the beginning of the month, boosted by the higher settlement prices of production enterprises, spot costs moved up, and traders rose. However, the high level transaction was blocked, and the specific transaction was weak, making it difficult for the rally to continue. In the first ten days of this month, as the price of the aggregated MDI market rose to a high level, the overall market atmosphere fell, and specific transactions decreased. Traders are adjusting their quotations and waiting for the actual order. In the middle of June, due to insufficient demand and a poor overall atmosphere in the aggregated MDI market, traders have lowered their factory quotations in order to actively ship. Near the end of the month, the downstream demand side is experiencing poor buying sentiment, insufficient tracking ability, and a strong negotiation atmosphere. Traders often lowered their quotations by around 200 yuan/ton in order to ship the goods to the order, but the results were not significant, and the aggregate MDI spot market continued to decline.

On the supply side, the 400000 ton/year MDI device in Chongqing was restarted on March 6, and the 800000 ton/year MDI device in Ningbo returned to normal production status on March 18. The MDI operating rate in March was 79%. Next month, China’s aggregate MDI production and capacity utilization weekly data are expected to be around 178400 tons, with a capacity utilization rate of around 75%, down from the current period. There are positive factors in the supply side.

On the cost side, raw material pure benzene: In March, the domestic price of pure benzene fluctuated at a high level. On March 31, the benchmark price of pure benzene for the business community was 7233.83 yuan/ton, an increase of 1.83% compared to the beginning of this month (7103.83 yuan/ton). Raw material aniline: In March, the domestic aniline market price gradually increased. On March 31, the benchmark price of aniline for the business community was 13150.00 yuan/ton, up 7.79% compared to the beginning of this month (12200.00 yuan/ton). There are positive factors in the cost side of short-term aggregate MDI.

On the demand side, the follow-up efforts on the demand side have been poor. In addition to maintaining high orders from the main factories of refrigerators and freezers, overall downstream demand side buying has been poor, and short-term aggregate MDI demand side support is insufficient.

In the future, it is predicted that the maintenance of devices will gradually resume and the supply will increase, but the downstream demand will be favorable for a long time. The analyst of Business News Polymerization MDI predicts that the domestic polymerization MDI market is mainly subject to fluctuations and consolidation.