According to the Commodity Market Analysis System of Shengyi Society, the overall TDI market in East China rose in December, with a step-by-step increase. At the beginning of the month, the average TDI market price was 12650 yuan/ton, and on December 31, the TDI price was 12850 yuan/ton, an increase of 1.58% during the month and a decrease of 23.51% year-on-year.

In December, the TDI market in East China was significantly affected by the supply side. Since the beginning of the month, mainstream factories have been undergoing maintenance and temporary shutdowns, resulting in a temporary shortage of spot goods and slow filling of TDI sources, leading to a rise in prices. Mainstream factories have a strong willingness to raise prices. In mid December, with the resumption of equipment operation and an increase in production load, downstream resistance to high priced sources of goods became apparent, resulting in a slight decline in TDI prices. Subsequently, the market stabilized and operated until the end of the month.

Supply side: Shanghai Kesi Chuang restarted on December 11th, Yantai Wanhua stopped on December 20th, and restarted on December 26th. The TDI units of Xinjiang Juli and Fujian Wanhua are operating unstably and will start operating at medium to high loads at the end of the month.

The upstream toluene market fluctuated and rose. As of December 30th, the domestic average price of toluene was around 6052 yuan/ton, an increase of 4.33% from the price of 5800 yuan/ton on December 1st. The overall trend of crude oil fluctuated and rose within the month, driving an improvement in the atmosphere of the spot market. The demand for gasoline in Shandong has improved, and the purchasing enthusiasm of diversified enterprises has also rebounded to some extent. The overall ex factory prices of refineries in Shandong have risen, and the atmosphere in the spot market is good.

According to the analysis of the future market, the TDI data analyst from Shengyi Society believes that some factories experienced a decline in settlement in December, which led to an unstable focus of the TDI market, mediocre downstream demand performance, mainly completed contract customers, and a lack of new orders. It is expected that the TDI market will operate weakly in the short term.