Supply Tension Worsens in TDI Market for Bayer’s Turnaround in May
2012-05-11 [Source: Pudaily]
PUdaily.Shanghai-Since the middle of April, TDI price has increased rapidly and then stays at firm levels till now.
Against the background of poor downstream foam demand, the continued price hikes should owe to tight supply at home and abroad.
Tightness prevailing in overseas TDI markets results in rising USD quotations, which in turn, pushes prices up in the mainland to some extent. However, actually, domestic supply conditions are not all roses.
In South China, imported materials are rarely seen due to high USD quotations. In East China, Bayer TDI plant has been running with low load since Mid-April and was shut down for about one month in early May. BASF also plans to conduct maintenance in June for one month thus it began to restrict supply to distributors from April.
Quotations of Shanghai resources already climbed to RMB23000/ton yesterday on tight supply in E-China.
Graph1: TDI RMB Price Trend in South China
Graph2: TDI USD Price Trend
Tightness prevailing in overseas TDI markets results in rising USD quotations, which in turn, pushes prices up in the mainland to some extent.
At this moment, many traders become more reluctant to sell stocks, presuming the price may further go up. Generally, they hold positive attitude towards the prospect.
Buyers don't show much intention to stock up in large amount presently as the traditional low season is approaching in the foam industry. Most of them purchase feedstocks upon use.
Having heard so many complaints about the soft downstream demand, PUdaily consultant will show you some statistics in major downstream sectors such as automobile, coatings and upholstered furniture of the first quarter in 2012 for a better understanding of TDI consumption.
Table 1 China Upholstered Furniture Output in Q1 (Unit: 10K)
|
Month
|
January
|
February
|
March
|
|
Output
|
281.1
|
285.7
|
326
|
Table 2 Shanghai Coatings Output in Q1 (Unit: Ton)
|
Month
|
January
|
February
|
March
|
|
Output
|
71834.35
|
85782.43
|
133977.84
|
In April, East China contributes 76% to the total supply of coatings. A large amount concentrates in Shanghai, Shandong, Jiangsu, Zhejiang, Fujian, Anhui, and Jiangxi.
Graph 3: China Automobile Output and Sales Data (Unit: 10K)
Editor: Zoe
Email: xjq@chem366.com
http://www.pudaily.com/News_view.asp?NewsID=30872
Comments