Chinese Polyurethane resin market witnesses a reversal in trend
- 20-Apr-2022 6:47 PM
- Journalist: Li Hua
Chinese Polyurethane market witnessed a reversal in trend during the third week of April as feedstock polyols and Isocyanates prices have risen over the couple of weeks, exerting cost pressure on the prices of PU resin in the spot market. Polyether Polyols and polyester polyols have been in short supply in the domestic market since mid-March as the new wave of pandemic forced shut the production in major industrial regions.
Most polyol producers and suppliers have been finding it difficult to transport their shipments due to strict lockdowns forcing them to reduce prices since the last week of March. Warehouse inventories bound for the overseas market too have ultimately found their way back into the domestic market due to lack of ship space and congestion at major ports. Propylene Oxide offers from Shandong and North China were heard in the range of CNY 11200 to CNY 11500 per MT on an Ex-Works basis while the traded price in East China was assessed at CNY 11300 to CNY 11500 per MT.
Polyurethane foam market continues to be impacted by supply shortages as major manufacturers including Huntsman Shanghai Co. have reduced outputs in the light of strict lockdowns impose by the government. Isocyanates market too has been gasping for an ease in supply with polyurethane foam market choked by the unavailability of feedstock Methylene Diphenyl Di-Isocyanate (Polymeric MDI). Flexible Polyol prices in Shandong were heard in the range of CNY 11600 – CNY 11800 per MT on an Ex-Works bulk basis.
The PU resin market is expected to continue its uptrend for the month of April, as demand is likely to peak out by the mid-May period while supply of raw materials including Isocyanates and Polyols could only see some softening by the end of the second quarter of FY22 as per ChemAnalyst’s assessment of the PU resin market.