According to the Commodity Market Analysis System of Shengyi Society, the domestic aggregated MDI market in July first fell and then rose, with a slight overall decline. From July 1st to 31st, the domestic market price of aggregated MDI increased from 17683 yuan/ton to 17616 yuan/ton, with a monthly price drop of 0.38% and a year-on-year price increase of 7.2%.

In the first half of the month, the domestic aggregated MDI market continued to decline due to weak downstream demand and sluggish upstream sales, resulting in a weak MDI market.

In mid month, with the decline in MDI prices, downstream procurement entered the market at a low price, and under the game of supply and demand, prices entered the stage of maintaining stability and consolidation.

In the latter half of the month, there were frequent reports of upstream maintenance, tightening supply, and prices began to rebound at the bottom. With prices rising, trading volume in the market followed slowly. At the same time, the cost of aniline and pure benzene both experienced varying degrees of decline, with clear bearish constraints. The market stopped rising and stabilized, and the market remained stable until the end of the month.

On the supply side, the Wanhua plant in Yantai will be shut down for maintenance on July 16th, lasting about 45 days. On July 26th, the Dongcao Rui’an plant was shut down for maintenance, which lasted for about 35 days. Some devices maintained low load operation, which effectively boosted the MDI market in late July.

On the cost side, raw material pure benzene: The domestic pure benzene market has been declining. As of July 31st, the benchmark price of pure benzene in Shengyi Society is 8408 yuan/ton. Raw material aniline: Currently, the domestic aniline market is accelerating its decline, falling below 10000 yuan. As of July 31st, the benchmark price of aniline in Shengyi Society is 9825 yuan/ton. The negative impact of cost factors on aggregated MDI.

On the demand side, downstream markets are slowly following suit, but with prices rebounding after falling, the buying atmosphere in the market has improved, resulting in an increase in transactions. Recently, the cold and formaldehyde free board industry has continued to follow up, while other industries have been slow to follow up, and the overall market is driven by a strong trend. The short-term aggregation of MDI demand is influenced by favorable factors.

The future forecast shows limited follow-up from downstream demand, market digestion of price increases, significant cost side bearish constraints, and gradual weakening of supply side support. Business Society’s aggregated MDI analyst predicts that the domestic aggregated MDI market will be weak and mainly follow suit.