China Polymeric MDI Weekly Report Version: ( )

Transcription

1 China Polymeric MDI Weekly Report Version: 2022 ( ) 1 Weekly News Headline AkzoNobel and Solvay Partner to Expand Sustainable Raw Materials in Coatings (1$=CNY 6.) Arkema Announces the Successful Start-up of Its Acrylic Acid Capacity Expansion at Clear Lake, US China Yantai Wanhua Renamed as Wanhua Chemical Tel: Fax: pudaily@chem366.cn URL: Japan MDI Plant Undergoing Maintenance as Planned Jon M. Huntsman to Receive Leadership Award from American Chemical Society Group News Feature: China PU Insulation Materials Application and Building Energy Efficiency 2 Weekly Market Analyses 2.1 Summary Weekly Review China polymeric MDI market falls as expected following lower prices from suppliers but it ends this week with stable note as the market is believed to bottom out. Lower prices from domestic manufacturers in June translate to general dropping in spot polymeric MDI market as expected since some distributors have already showed price cut intention after new prices announcement. Spot deals for imports from Japan and South Korea named as MR200 and M200 decline to RMB16600/ton DEL in east China and RMB /ton (invoice excluded) are also heard in south China. And the three sources from Shanghai also lose ground to imports with prices heard at around RMB17000/ton. Meanwhile, goods from the largest supplier retain relatively high at RMB /ton, but sale share among deals within this week fall obviously due to large price spread, according to market sources. Distributors related to the supplier keep firm prices because of none sales assessment in June, but the company may have to see high stocks if the large price difference persists. Heading into the weekend, the market becomes stable as imports are believed to bottom out and other distributors also follow to keep stable quotations. All sources end this week at the weekly lowest price level. Imports for June deliveries from Japan are partly concluded at USD2150/ton CIF China, although buying ideas are around USD2100/ton, before raises its offer by USD100/ton to USD2250/ton CIF China because of low stocks amid shutdown. Imported cargoes from South Korea are dealt between USD /ton CIF China against the Yosu-based supplier s offer of USD2200/ton CIF China. Production news: major domestic manufacturers are going to enter turnaround in mid-june but Page 1of 5

2 availability is expected to remain good considering weak demand. Downstream Industry Some refrigerator manufacturers have cut their output after government s allowance policy to producers expired on May 31. An appliance manufacturing source said their polymeric MDI procurement has declined by 30% recently and solar water heater demand also falls by a half. Polyurethane lamination consumption is largely hindered by cheap polystyrene materials. But automobile has enjoyed stable growth for the recent months, though it s unknown that government allowance policy will cancel or not. Table 1: Prices Comparison between Different Types of Polymeric MDI in Different Regions (RMB/ton) Grades E-China S-China N-China PM M20S (China) v20L MR200 (Ruian) MR200 (Nanyo) M Notes: 1 Prices are spot quotations on Friday from traders 2 -- refers to price scarcely heard Table 2: Polymeric MDI Transaction Prices Comparison between Weeks in China (Drum, RMB/ton) Polymeric MDI E-China S-China N-China USD (CIF China) This Week Last Week Fluctuation -200, , , , 40 Table 3: Asia Major MDI Facilities Movement Producer Yantai Wanhua Ningbo Wanhua Bayer MaterialScience (China) Co., Ltd. Shanghai Lianheng Isocyanate Co., Ltd. Shanghai BASF Huntsman (Shanghai) Industry Co., Ltd. (Ruian) Co., Ltd. Plant Location Capacity/ Ktpa Production Note Yantai, China % loads Ningbo, China % loads; scheduled turnaround and transformation at phase Ⅰ starting on June for 45 days Shanghai, China % loads; scheduled turnaround in June Shanghai, China 280 Shanghai, China % loads; three-week annual turnaround starting June % loads; schedule maintenance starting June 22 Shanghai, China % loads; annual turnaround starting June 18 Zhejiang, China 70 90% loads Nanyo, Japan % loads; Turnaround at 0ktpa and 70ktpa units started on May 7 and till mid-june; newest 200ktpa turnaround in Sep. or Oct. Mitsui Chemicals Inc. Omuta, Japan 60 Shut down on May 6 for turnaround to June 23 Page 2 of 5

3 Kumho Mitsui Chemicals Inc. BASF (South Korea) Co., Ltd. Yosu, South Korea 200 Resume Regular on May 20 and 90% loads Yosu, South Korea 250 Regular Graph 1: Polymeric MDI Weekly Price Trend from 20 to 20 RMB/ton Date Jul- 09- Sep- RMB USD Dec Source: PUdaily.com 17- Aug Nov Notes: 1RMB Price: Drum, E-China; 2USD Price: Spot Price, CIF China USD/ton 2.2 Suppliers Quotes Domestic Suppliers Table 4: Quotes from Domestic Suppliers to Their Distributors (RMB/ton) Producer Yantai/Ningbo Wanhua Shanghai BASF Bayer MaterialScience (China) Co., Ltd. Huntsman (Shanghai) (Ruian) Co., Ltd. Capacity (ktpa) 00 Location Yantai, Ningbo June List Price & Contract Price May Settlement Price May List Price & Contract Price Shanghai Shanghai Shanghai Zhejiang USD Quotes Table 5: Quotes from Global Suppliers (Contract Price, USD/ton/CIF China/Drum) Notes: -- stands for prices not yet heard Producer Region June Quotes May Quotes Industry Co., Ltd Japan Kumho Mitsui Chemicals Inc. S Korea Mitsui Chemicals Inc. Japan Notes: 1 -- refers to producer offers no price or price not yet heard 2 RMB Cost=USD CIF price *(1+17%)*(1+6.5%) *Exchange Rate+ Import Port Charge; (Only available for calculating the costs of China Polymeric MDI imports. 17%: VAT rate; 6.5%: Import duty rate). 3 Feedstocks of Polymeric MDI Page 3 of 5

4 Table 6: Weekly Crude Oil Pricing ($/bbl) 3.1 Crude Oil Date NYMEX WTI ICE Brent OPEC(Package) Fluctuation Notes: 1Prices for futures contract; 2 Friday s prices are closing prices on Thursday Graph 2: WTI Crude Oil Price Trend from 20 to 20 $/bbl Date Jul- 15- Aug- - Sep- Source: PUdaily.com Nov- 5- Dec Benzene Asia benzene is mainly flattish without big headlines to guide the market and players are in cautious stance. Wait moods are also prevailing in domestic market as players await Sinopec s price revise and only small buyers get replenished. Quotations are heard at RMB /ton in east China. Table 7: Weekly Benzene Pricing Date USD Price (FOB S.Korea) (USD/ton) RMB Price (RMB/ton) Fluctuation -4, , Aniline Aniline market is tepid and market sentiment is not good due to weakening demand. Buying interest is stagnant and players pay attention to feedstocks benzene market trend. Table 8: Weekly Aniline Pricing (RMB/ton) Date East China North China Fluctuation n/c -100, Exports/ Imports Analysis Page 4 of 5

5 China exports of polymeric MDI in April under the HS code of were 22,261 tons, growing 14.44% comparing with the same period during 20 and decreasing 4.55% comparing with March. Imports in April were 24,321 tons, posting an increase of 51.% year on year from 16,094 tons and a drop of 29.42% month on month from 34,457 tons in March, in line with lower demand. From January to April, China exported 84,347 tons of polymeric MDI and imported 4,148 tons. Top destinations for April exports were USA (4,799 tons), South Korea (2,402 tons), Belgium (2,099 tons), Turkey (1,997 tons) and India (1,847 tons). Table 9: China Polymeric MDI Export/Import Flow from January to April, 20 (Tons) Month Import Export 29,155 19,543 26,215 19,221 34,457 23,322 24,321 22,261 April Year on Year % % Jan. to Apr. Year on Year 87.82%.33% 5 Market Forecast The market will be flattish next week as the market will open only on Thursday and Friday after Dragon Boat festival holidays end on June, but the market is expected to fall slightly in near future on weakening demand. Customers with direct supply is bound to cut polymeric MDI purchase with demand deteriorating in June, and MDI producers are faced with increasing stocks pressure, although most of them have maintenance plans in this month. Positive news for the market including reduced imports in June and less domestic supply amid shutdown are negligible in light of generally demand downtrend. Notes: This report is only for reference and no responsibilities or liabilities will be accepted by PUdaily for commercial decisions claimed to have been based on the content of the report. Any form of replication without permission from PUdaily( strictly forbidden. If you have any question, please contact us at: Tel: pudaily@chem366.cn Fax: Page 5 of 5