9/9 TDI Prices continue to rise

According to data from Sunsirs (Business Society) Bulk Commodity Index, the average market price of TDI in East China was 15,933.33 yuan/ton on September 9, up 7.17% from the previous day and 24.48% year-on-year.

On September 9, the TDI commodity index stood at 84.30, an increase of 5.64 points from the previous day. It was down 66.01% from the cycle peak of 248.02 points (October 19, 2016) and up 60.39% from the cycle low of 52.56 points on May 5, 2020. (Note: The cycle spans from September 1, 2011 to the present.)

The domestic TDI market has strengthened sharply. Force majeure has been declared at overseas TDI plants, factory list prices have been raised substantially one after another, and dealer quotations have followed suit with large adjustments. Downstream products such as sponge have also raised prices accordingly, providing reverse support to the market. Market participants hold a cautious attitude, mainly digesting the price increases, with limited high-price transactions.

On the upstream front, toluene prices rose slightly. Port inventories remain high and market supply is still in surplus. However, demand for toluene from downstream blending oil and solvent sectors has shown signs of improvement, leading to a mild recovery in overall toluene demand, with supply and demand gradually moving toward balance.

Analysts at Sunsirs commented: The domestic TDI market is currently in a strong upward trend. Following substantial increases in factory guidance prices, dealers have lifted their offers to high levels, while downstream demand continues to lend reverse support. The domestic TDI market is expected to maintain a strong performance in the short term, with close attention to downstream follow-up.

Related listed companies: Cangzhou Dahua (600230), North China Pharmaceutical Co., Ltd. (002246)