Review of MDI market in 2022
In the first quarter of 2022, the MDI market showed a fluctuating downward trend.
The main reason for the market trend in the first quarter is that before the Spring Festival, traders were too optimistic about the demand after the year, hoarded more goods, the social inventory was high, and the supply side was negative. Returning to the market after the Spring Festival holiday, affected by public health events, downstream enterprises resumed work slowly, and logistics and transportation were also limited. MDI market fell again and again.
In the second quarter, the MDI market was weak and the price was lower due in shock.
The main reason for the market trend in the second quarter is that the main production area of Shanghai was affected by public health events, the load of MDI devices was reduced, and the logistics and transportation were severely restricted. Downstream production enterprises in Jiangsu and Zhejiang regions reduced their burden or stopped production, and the relevant demand of the hard foam industry had been seriously affected. The trade market atmosphere was depressed, and it was maintained by small orders just on demand. After entering June, various regions had gradually recovered, traders' mentality had improved, and market prices stopped falling and rebounded slightly.
In the third quarter, the domestic MDI market was also dominated by weak operation, until the "golden September" slightly changed.
In July, the listing prices of manufacturers were mostly stable, traders generally looked down on the outlook, and there was a phenomenon of selling MDI at a low price in the market. In August, the supply of imported goods was large and the price was low, impacting the domestic market which had already been in contradiction with supply and demand. At the same time, the overall downstream purchase gas was poor, the contradiction between supply and demand was more prominent, and the domestic MDI market was significantly lowered. In September, the quotations of major manufacturers were raised, the supply was reduced, and the MDI market showed a rebound trend.
In the fourth quarter, the domestic MDI market fell first and then rose.
In October, affected by the sluggish demand, the MDI price fell in depth. In November, the price of domestic MDI fell to the lowest point in the year, but the relatively high price of raw materials supported the MDI to stop falling. In December, positive factors frequently appeared: some imported goods decreased, domestic manufacturers reduced supply, MDI social inventory was low, and supply was good; At the same time, as prices hit the low point in the new year, traders were willing to take advantage of the opportunity to push up the market, and the market was slowly moving upward. However, near the end of the year, Fujian Wanhua's 400,000 t/a new unit entered the market. The start-up was successful, the load was relatively stable, the supply of goods was successful, the downstream follow-up capacity was poor, and the market was partially declined.
