China Methylene Diphenyl Diisocyanate Market Battles with Escalating Epidemic, Prices Drop Sharply

MUMBAI (ChemAnalyst)-Another resurgence of Covid-19 cases has disrupted the market sentiments of China due to the restricted consumer activity and the officially imposed lockdowns on several crucial markets. The prices of several commodities have been going south and contradicting the pricing trend of the rest of the world. The prices of Methylene Diphenyl Diisocyanate (MDI) are also declining, owing to the current market scenarios. The biggest question arising is, how long is this epidemic going to affect the MDI market, and what will the repercussions be?

During the last week of April, the market sentiments of MDI were between weak to stable amidst the ongoing epidemic and the upcoming labour holidays. There was a lack of inquiries for MDI in the market because of the limited market movements. Several traders held back their quotations for MDI, considering the upcoming holidays.

The traders have distinct market outlooks for MDI, including both high and low proposals owing to the uncertainties. They are waiting for the holidays to end, the epidemic situation to be in control, and the logistic charges to settle before making any proposal for the product. The price value of Methylene Diphenyl Diisocyanate (MDI) at Wanhua assembled at CNY 18,500/Ton, and at Shandong, it was somewhere between CNY 18,300-18,500/Ton on April 29.

However, in other Asian countries like India, the market of MDI was propelling Throughout April due to the solid downstream demand from Polyurethane based industries and the escalated upstream cost involved in the production. The prices of Methylene Diphenyl Diisocyanate (MDI) settled at USD 3754.14/MT Ex-Mumbai during the week concluding on April 29. According to ChemAnalyst, “The unpredictability in the Chinese market amid the epidemic would most probably impede the Methylene Diphenyl Diisocyanate (MDI) market in the upcoming days. Meanwhile, the ongoing holidays in the country would continue to be the constraining factor for downstream demand of MDI for the next one or two days. However, if the covid-19 cases come down and the situation becomes under control in the future, the market might recover.”