Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Spot Market Analysis
Market Overview
TDI
In the past two weeks, Southeast Asia (hereinafter referred to as SE A or SE Asia) TDI market remains in stable
running. The prices from Korea, Japan and China to SE Asia were reported at around USD 2,700-2,900/ton CIF for
October shipment, which is the same as the end of September. Besides, market participants are optimistic on
future trend, but they mentioned that PPG is high limited in the market. Contrarily, TDI seems more available
than PPG in some Southeast Asian countries, and some distributors sell on bundling with TDI and PPG together.
For Korea TDI suppliers, one of them is undergoing maintenance, and OCI is also expected to be overhauled next
month, which will result in short supply in certain countries in Asia. In this case, it will provide a support for the
market, making the spot prices remain firm continually.
China TDI market remained flat in the past two weeks. Major domestic TDI suppliers lowered guiding prices last
week, and downstream customers purchased only based on rigid demand. However, a temporary equipment
fault occurred in a factory in North China, which propped up the market in some way. Against this backdrop, the
market has turned to relatively stable, and lower offer was rarely heard in recent days.
On Oct. 23, for China-made sources, TDI price stood at RMB 16,300-16,500/ton, which is equal to around USD
2,252/ton DEL excluding Value Added Tax, increased by USD 38/ton compared with that on Oct. 9. For
Shanghai-made sources, TDI price stood at RMB 17,200-17,500/ton with the equivalent of around USD 2,350/ton
DEL excluding Value Added Tax, increased by USD 40/ton compared with that on Oct. 9.
India: TDI market in India remains in stable running for the last two weeks. According to market sources, both of
GNFC plants are running normally at full rate currently.
Production news
Table 1 Asia TDI Plants Operation Dynamics
Producer Location Capacity
(Ktpa) Week Average Production rate
Covestro (China) Co., Ltd. Shanghai, China 275 100%
Shanghai BASF Polyurethane Co., Ltd. Shanghai, China 160 100%
Wanhua Group Yantai, Shandong 300
According to market news, the load is not high and there are certain device problems.
Wanhua Fujian (Formerly known as SEEC) Fuzhou, Fujian 100
Producing rate is estimated at around 50%。
(one-line operation)
Cangzhou Dahua Group Co., Ltd. Hebei, China 150
Producing rate is estimated at around
100%. (two-line operation)
Gansu Yinguang Chemical Industry Group Co., Ltd. Gansu, China 100
100%. It restarted normally on September 20.
$ 1=CNY 6.68 (Oct. 12, 2020)
$ 1=INR 73.66 (Oct. 12, 2020)
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Yantai Juli Isocyanate Co., Ltd. Shandong, China 80 Plant shut down on Oct. 21 because of
temporary failure, and restart time remain
undetermined.
Xinjiang Juli Co., Ltd Xinjiang, China 150 Plant shut down on around Oct. 10, and it
will resume in near future.
Lianshi Chemical Huludoa, Liaoning 50 0 load, under maintenance.
Total capacity in China 1,365
Mitsui Chemicals & SKC Polyurethanes Inc. Omuta, Japan 120
According to market news, the offer is
suspended. The device is expected to be
malfunctioning.
BASF Urethane Co., Ltd. Yeosu, South Korea 160
The load is about 90%, and the device
returns to normal. A 45-day overhaul will
start on October 16.
Hanwha Chemical (KPX Fine Chemical) Yeosu, South Korea 150
Full loads, three-line operation. The
maintenance will start on October 26 for 30
days.
OCI Company Ltd. Kunsan,
South Korea 50
Full loads, it is expected to be overhauled in November for 2 weeks.
Gujarat Narmada Valley Fertilizer Company Limited Dahej, India 17
100%
Gujarat Narmada Valley Fertilizer Company Limited Bharuch, India 50
100%
KARUN BIK Port (BANDAR
IMAM KHOMEIN) 40
75% loads
Sadara Al Sharqiya, Saudi
Arabia 200
The device malfunctioned around August 20
and it is expected to last for a long time, possibly until the fourth quarter.
Total capacity in Asia and Middle East 2,152
Polymeric MDI
In Southeast Asia, the polymeric MDI market increase greatly in the reporting period. Offers in SE Asia were
increased to around USD 2,500 - 2,600/ton CIF with cargoes from China and South Korea suppliers, which
increased by USD 450-550/ton relatively compared with the offers in last reporting period. The demands in
Southeast Asia ran stably, while the sources from Japan and South Korea producers to this market were much
tightened due to their very limited stocks to supply. Both the spot prices and the contract prices in Southeast
Asia experienced further increased.
In China, the polymeric MDI market price increased strongly in the reporting period. The market prices kept
increasing firmly because the spot goods supplied from almost all producers were much tightened, some
producers in Asia like Huntsman Shanghai and KMCI are/will be under facility maintenance, Covestro Shanghai
and Tosoh (plants both in Japan and Ruian of China) had to decrease production and very limited supply to
China market due to some production issues. Almost the whole distribution market in China took bullish
sentiment and was reluctant to sell their stocks on hand, or quoted an increasing prices for transaction. More
downstream customers clashed to the high prices, but had to make small rigid-demand orders followed with the
increasing contract prices. The demand volume in China kept stable as a whole, especially demands from home
appliance, automobiles and spraying.
On 23th Oct., for Wanhua-brand, market prices were at RMB 21,700-22,000/ton (equal to USD 2,700 -2,737
/ton CIF China excluding taxes), increase by USD 464-439/ton compared with the price on 9th October.
(considering exchange rate changes). For other brands, market prices were at RMB 21,200-22,000/ton (equal
to USD 2,637-2,737/ton CIF China excluding taxes), increased by USD 426-476 /ton with the price on 23th
October (considering exchange rate changes).
In India, the polymeric MDI market increased greatly in India in the reporting period. The CIF offers for India
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
market ran at around USD 2,500 - 2,600/ton, increased by USD 450-550/ton relatively compared with the price
on 9th October. The price increase was mainly followed by the price increase in other regions and countries, and
the actual transaction volumes were scarce. Very limited sources from South Korea and Japan were seen in
India market in the reporting period as the producers’ very low stocks.
In China Taiwan, polymeric MDI market price increased greatly in this reporting period. Ruling offers were
increased to around USD 2,500-2,550/ton CIF Taiwan from Japan and China sources, increased by around USD
450/ton relatively compared with the price on 9th October. Traders in Taiwan have the firm intention to further
increase the spot prices in next reporting period.
Pure MDI
Pure MDI prices in Southeast Asia greatly increased to around USD 3,800-4,500/ton, increased by USD
1550-2000/ton with the price on 9th October. The price increase was mainly because the further tightened
supply from main producers and the strong price increasing in China and other countries in Asia and Europe.
Pure MDI prices in China greatly increased in the reporting period. The market prices increased strongly to RMB
34,000-35,000/ton (equal to USD 4,230 - 4,355/ton CIF China without taxes) on 23th October, USD 2,037 -
2040/ton higher than the price on 9th October (considering exchange rate changes).
Pure MDI prices in China Taiwan strongly increased in the reporting period. Ruling offers were increased to the
range as USD 3,500-4,300/ton CIF Taiwan from China, South Korea and Japan, USD 1,250-1,800/ton higher
than the price on 9th October (considering exchange rate changes). The actual transaction volumes were scarce.
Asia MDI Production
Operation loads of plants from manufacturers are as below:
Table 2 Asia MDI Plants Operation Dynamics
Producer Location
Capacity
(Ktpa)
Operating Ratio/Production Note
Wanhua Chemical (Ningbo) Co., Ltd. Ningbo, China 1,200 90%, Normal operation, scheduled to
overhaul in this Dec.
Wanhua Chemical Group Co., Ltd. Yantai, China 600 Normal operation
Covestro Shanghai, China 550
60-70%, decrease load due to some
production issues. Scheduled to overhaul
from early November for 40 days
Chongqing BASF Chongqing, China 400
80%. Normal operation. Scheduled to
overhaul in mid-December.
Shanghai Lianheng Isocyanate Co., Ltd.# Shanghai, China 350
Normal operation.
Will overhaul in this Oct.
Shanghai, China 240 Normal operation.
Shanghai BASF Polyurethane Co., Ltd.* Shanghai, China 210 80-90%, Normal operation
Huntsman (Shanghai) Polyurethane Co., Ltd.*
Shanghai, China 160 80-90%, Normal operation
Shanghai, China 240 0%, shut down for overhaul, expected to
restart in early November.
Note
1. “#” means that Shanghai Lianheng
has only synthesis facility.
2. “*” means that BASF, Huntsman
and Tosoh (Ruian) have splitters only.
3. Total capacity is calculated on
mother liquid.
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Tosoh (Ruian) Co., Ltd.* Zhejiang, China 80 100%. Normal operation
Total capacity in China 3,340
Total outputs in China 2,490
Avg. Operation Loads in China 74.6%
Tosoh Corporation Nanyo, Japan 400
0%. The 200,000-ton/year unit shut
down for overhaul from Sep. 10, not restart
yet. The other two lines also shut down from
Oct 8 due to equipment issues.
Kumho Mitsui Chemicals Inc. Yeosu, South Korea 410 0%, shut down for overhaul from Oct 22
to Nov 21
BASF Urethane Co., Ltd. Yeosu, South Korea 250 80-90%, will overhaul from Oct 31 to
Nov 19 for 20 days
Sadara Chemical Company Saudi Arabia Jubail 400 70%, normal operation
KARUN
BIK Port 40 75%, normal operation
Total capacity in Asia 4,840
Total outputs in Asia 3,265
Avg. Operation Loads in Asia 67.5%
Spot prices
Table 3 SE Asia & India TDI Market Prices Comparison (USD/ton, drum and CIF)
Country October 23 October 9 Change
Indonesia 2,700-2,800 2,700-2,900 0,-100
Malaysia 2,700-2,800 2,700-2,900 0,-100
Singapore 2,800-2,900 2,700-2,900 100,0
Thailand 2,700-2,900 2,700-2,900 0,0
India 2,700-2,900 2,700-2,900 0,0
China (RMB/ton) 16,300-17,500 16,000-17,000 300,500
Table 4 SE Asia, India, Taiwan Polymeric MDI Market Prices Comparison (USD/ton, drum and CIF)
Country October 23 October 9 Change
Thailand 2,500-2,600 2,050-2,150 450,450
Indonesia 2,500-2,600 2,050-2,150 450,450
Vietnam 2,500-2,600 2,050-2,150 450,450
Malaysia 2,500-2,600 2,050-2,150 450,450
India 2,500-2,600 2,050-2,150 450,450
Chinese Taiwan 2,500-2,550 2,050-2,100 450,450
China mainland (RMB/ton) 21,200-21,700 17,800-18,000 3400, 3700
China mainland 2,637-2,700 2,211-2,236 426, 464
Note:
1. 1. Market prices: prices largely heard in
the market from distributors and
traders to end-users;
2. 2. China prices: East China (RMB/ton,
Drum, delivery);
3. 3. “n/c” refers to No change;
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Table 5 SE Asia, Taiwan Pure MDI Market Prices Comparison (USD/ton, drum and CIF)
Region/Country October 23 October 9 Change
Southeast Asia 3,800-4,500 2,250-2,500 300, 400
Chinese Taiwan 3,500-4,300 2,250-2,500 1250, 1800
China mainland (RMB/ton) 34,000-35,000 23,000-23,000 11000, 12000
Main Suppliers’ Offer
Table 6 TDI Suppliers’ Offer in SE Asia & India (USD/ton, drum, CIF) Region/Country Japan South Korea China
Southeast Asia 2,700-2,800 2,700-2,900 2,500-2,600
India -- -- --
Table 7 MDI Suppliers’ Offer in SE Asia, India, Taiwan (USD/ton, drum, CIF)
Region/Country Product Japan South Korea China
Southeast Asia Polymeric MDI -- 2,500-2,600 2,500-2,600
India Polymeric MDI -- 2,500-2,600 2,500-2,600
Chinese Taiwan Polymeric MDI 2,500-2,550 2,500-2,550 2,500-2,550
Southeast Asia Pure MDI -- 3,800-4,500 3,800-4,500
Chinese Taiwan Pure MDI -- 3,500-4,300 3,500-4,300
Raw Materials Analysis Toluene
Asia toluene price stood at around USD 404/ton FOB Korea on Oct 23rd, 2020, decreased by USD 10/ton
compared with that on Oct 9th, 2020.
Benzene
Asia benzene is settled at USD 450/ton FOB South Korea on October 23th, 2020, increased by USD 42/ton
compared with that on October 9, 2020.
Note:
4. 1. All prices are the latest offers;
5. 2. Local supplier TDI price: GNFC’s offer
(ex-work, drum);
6. 3. Local supplier polymeric MDI price:
BASF’s offer (ex-work, drum);
7. 4. “--“means prices unheard or yet to be
disclosed;
8.
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Figure1 SE Asia, India and China TDI Price Trend & Asia Toluene Trend
Figure2 SE Asia, India and China Polymeric MDI Price Trend & Asia Benzene Trend
Figure3 SE Asia, Taiwan China MMDI Price Trend & Asia Benzene Trend
200
1,200
2,200
3,200
4,200
5,200
01-Jan-19 01-Mar-19 01-May-19 01-Jul-19 01-Sep-19 01-Nov-19 01-Jan-20 01-Mar-20 01-May-20 01-Jul-20 01-Sep-20
USD
/to
n
SE Asia India China Asia Toluene
0
500
1,000
1,500
2,000
2,500
3,000
23-Jan-19 23-Apr-19 23-Jul-19 23-Oct-19 23-Jan-20 23-Apr-20 23-Jul-20 23-Oct-20
US
D/t
on
SE Asia India Asia benzene
0
500
1,000
1,500
2,000
2,500
3,000
23-Jan-19 23-Apr-19 23-Jul-19 23-Oct-19 23-Jan-20 23-Apr-20 23-Jul-20 23-Oct-20
USD
/to
n
SE Asia Taiwan, China Asia benzene (FOB Korea)
Note:
1. SE Asia price: TDI price range based on CIF;
2. India price: average TDI spot price, CIF India;
3. China price: TDI spot price in HK, CIF;
4. Asia Toluene Price: FOB Korea;
Note:
1. SE Asia price: polymeric MDI price range
based on CIF;
2. India price: average polymeric MDI spot
price, CIF India;
3. China price: drum, CIF China;
4. Asia Benzene price:FOB Korea;
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Imports and Exports Data
Table 8 SE Asia & India TDI Imports from China, Japan and South Korea in 2020 (Unit/Tons)
a) China
Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
Indonesia 490 1,905 1,800 -- -- -- -- -- -- -- -- -- 4,195
Thailand 928 578 404 -- -- -- -- -- -- -- -- -- 1,910
Malaysia 100 220 360 -- -- -- -- -- -- -- -- -- 680
Vietnam 1,027 855 2,009 -- -- -- -- -- -- -- -- -- 3,892
Philippines 560 400 1,080 -- -- -- -- -- -- -- -- -- 2,040
India -- 50 -- -- -- -- -- -- -- -- -- -- 50
Singapore -- 20 40 -- -- -- -- -- -- -- -- -- 60
Cambodia 160 120 160 -- -- -- -- -- -- -- -- -- 440
b) Japan
Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
Indonesia 1,321 2,020 1,820 880 24 800 2511 1218 -- -- -- -- 10,594
Thailand 543 521 645 188 40 280 114 438 -- -- -- -- 2,769
Malaysia 480 921 1,161 162 771 82 941 421 -- -- -- -- 4939
Vietnam 701 1,179 461 101 121 577 1117 1258 -- -- -- -- 5,515
Philippines 300 180 300 -- -- 300 100 -- -- -- -- -- 1,180
India 920 760 860 100 -- 20 360 760 -- -- -- -- 3780
Singapore -- -- -- -- -- -- -- -- -- -- -- -- 0
Cambodia -- -- -- -- -- -- -- -- -- -- -- -- 0
c) South Korea
Country Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
Indonesia 4,244 3,124 3,415 1543 786 3338 3674 2924 -- -- -- -- 23048
Thailand 220 340 160 60 440 320 160 322 -- -- -- -- 2022
Malaysia 805 882 700 -- 42 420 903 985 -- -- -- -- 4737
Vietnam 2,463 1,969 1,513 382 710 1431 1487 1555 -- -- -- -- 11510
Philippines 340 500 280 120 20 100 260 240 -- -- -- -- 1860
India 60 20 600 80 -- -- -- 220 -- -- -- -- 980
Singapore 80 100 60 20 80 80 20 100 -- -- -- -- 540
Cambodia 160 60 20 -- -- 80 120 80 -- -- -- -- 520
Table 9 SE Asia, India, Taiwan Polymeric MDI Imports from China, Japan and South Korea in 2020 (Unit/Tons)
a) China
Country Jan-Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total
Indonesia 2,508 2,098 777 550 601 864 920 8,318
Thailand 4,866 4,552 2,088 1,729 1,757 2,344 2,962 20,298
Note:
1. Source from countries’ trade
institutions;
2. “--” means not available so far;
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Malaysia 1,494 993 645 430 548 1,114 568 5,792
Vietnam 5,670 5,569 1,703 3,437 5,015 3,049 3,808 28,251
Philippines 412 107 22 20 346 0 2 909
Singapore 634 62 38 28 45 27 38 872
Cambodia 91 54 44 29 41 46 2 307
India 12,029 8,022 734 65 466 1,227 3,292 25,835
China
Taiwan
3,245 2,895 2,240 895 400 962 1,224 11,861
b) Japan
Country Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total
Indonesia 635 485 604 178 343 287 325 382 3,239
Thailand 389 323 379 423 227 300 426 624 3091
Malaysia 399 235 212 226 143 194 436 831 2676
Vietnam 1,323 1,319 1,915 773 1,065 1,794 880 1,500 10,569
Philippines 283 545 310 212 196 327 539 587 2999
Singapore 378 159 59 39 400 40 0 0 1,075
Cambodia 0 0 0 0 0 0 6 0 6
India 1,900 3,817 2,037 0 0 0 256 1,010 9,020
China
Taiwan
443 750 538 509 485 322 504 738 4,289
c) South Korea
Country Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total
Indonesia 558 765 840 674 266 473 654 743 4973
Thailand 862 1,142 1,155 931 768 999 968 1072 7897
Malaysia 756 874 1140 521 443 479 438 568 5219
Vietnam 675 1,586 537 519 364 917 351 463 5412
Philippines 206 223 192 0 20 20 194 197 1052
Singapore 18 430 93 18 100 10 2 220 891
Cambodia 0 0 0 0 0 0 7 0 7
India 4,711 2,745 4,290 290 156 71 761 2902 15926
China
Taiwan
278 269 502 222 258 386 400 241 2556
Table 10 SE Asia, India, Taiwan Pure MDI Imports from China, Japan and South Korea in 2020 (Unit/Tons)
a) China
Country Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total
Indonesia 214 150 364 464 70 83 132 132 1609
Thailand 50 33 68 18 1 50 1 6 227
Malaysia 82 0 53 67 18 46 51 100 417
Vietnam 1,084 1,252 1014 479 226 159 1233 905 6352
Philippines 0 0 0 4 0 0 0 0 4
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Singapore 258 625 1306 79 216 385 424 245 3538
Cambodia 0 0 1301 617 571 492 0 0 2981
India 901 993 0 0 0 0 563 1,306 3763
China
Taiwan
1,341 1,108 1716 976 513 306 987 1,456 8403
b) Japan
Country Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total
Indonesia 47 37 47 53 47 20 25 17 293
Thailand 118 151 168 118 50 17 50 84 756
Malaysia 106 82 49 75 50 65 82 130 639
Vietnam 262 843 1,034 106 17 252 715 995 4,224
Philippines 0 0 0 0 0 0 0 0 0
Singapore 924 924 672 0 0 0 252 185 2,957
Cambodia 0 0 0 0 0 0 0 0 0
India 267 356 488 58 38 96 226 320 1,849
China
Taiwan
691 1,091 937 962 318 317 527 928 5,771
c) South Korea
Country Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Total
Indonesia 82 194 96 33 16 16 16 66 519
Thailand 112 129 193 16 65 97 82 64 758
Malaysia 32 95 47 79 32 79 47 63 474
Vietnam 423 454 425 175 83 203 393 415 2571
Philippines 0 0 0 0 0 0 0 0 0
Singapore 197 214 657 114 66 181 165 197 1791
Cambodia 0 0 0 0 0 0 0 0 0
India 729 869 722 149 253 293 601 852 4468
China
Taiwan
285 609 753 374 114 220 360 278 2993
Market Outlook
TDI
Southeast Asia & India: TDI market in SE Asia and India is expected to remain stable-to-firm in the next two
weeks. Currently foam producers are looking for more PPG than TDI, whereas downstream demand for TDI is
relatively flat. On the other hands, TDI shows in short supply in some SE countries because of early
maintenance of Korea suppliers. Meanwhile, such a situation will last for a while as one of the Korea suppliers
will conduct their annual maintenance in the near future, which will further give a support for the market.
Polymeric MDI
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
Southeast Asia & India PMDI: Polymeric MDI price in Southeast Asia is estimated to firm-to-increase in the next
reporting period as the supply from mainstream MDI producers will be further tightened, and the price increase
trend will follow the price level in China and other countries in Asia and Europe. It is expected that the offers will
be firm or increase in Southeast Asia in next reporting period. The offers in India in next reporting period will
also be firm to increase. China polymeric MDI is estimated to be firm-to-increase in the next reporting period.
Pure MDI
Southeast Asia and India MMDI: Pure MDI market price in Southeast Asia and India is expected to be
firm-to-increase in the next reporting period. The supply tightening and price increase in China and other
countries in Asia and Europe, may continue to influence the price increasing of pure MDI as well.
Asia-Pacific Isocyanates Market Analysis
Version: Oct. 12, 2020 – Oct. 23, 2020
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