The poly-MDI market experienced a weak decline this week (February 2-6).

According to the commodity market analysis system of Business Society, from February 2 to 6, the domestic market price of polymeric MDI showed a weak decline. The average price at the beginning of the week was 14,133 yuan per ton, and by February 6, it had dropped to 14,000 yuan per ton, representing a weekly decrease of 0.91% and a year-on-year decline of 24.93%. During the week, trading activity in the polymeric MDI market was sluggish, with ample supply from producers and limited inquiries, resulting in low transaction volumes. Intermediate traders adjusted their quotations in line with market conditions, with some offering goods at lower prices. The news front remained quiet, lacking sufficient positive support for the market.

On the supply side: Domestic MDI plants are operating normally, while BASF's 650,000-ton-per-year MDI plant in Belgium is running at a low load, a situation expected to persist until March.

On the cost side: The price of raw material benzene has recently experienced fluctuating increases. Domestic production has slightly risen, while import volumes remain relatively high. Downstream styrene profits have improved, and the operating rates of aniline plants have recovered, leading to an expected increase in the comprehensive capacity utilization rate of benzene downstream. Downstream industries actively stockpiled before the holiday, resulting in a decrease in inventory at East China ports. Short-term market conditions are significantly influenced by cost and demand fluctuations, and with the increase in supply, the fundamentals are expected to weaken. Business Society's price trend comparison chart for benzene (upstream raw material) and polymeric MDI:

On the demand side: Downstream demand is driven by immediate needs, with pre-holiday stockpiling largely completed, leading to reduced transactions.

Looking ahead, the current polymeric MDI market is expected to stabilize. With the approaching Spring Festival and logistics constraints, the short-term market is anticipated to consolidate.