According to the Commodity Market Analysis System of Shengyi Society, the domestic aggregated MDI market showed weak performance in June and continued to decline. From June 1st to 30th, the domestic market price of aggregated MDI increased from 16333 yuan/ton to 15500 yuan/ton, with a monthly price drop of 5.1% and a year-on-year price drop of 12.66%.

In early June, Wanhua began maintenance on June 5th, and the Shanghai BASF and Huntsman units were restarting. The factory has a strong willingness to raise prices, but there is no significant increase in demand. Downstream entry into the market is cautious, and there is a strong wait-and-see atmosphere. The aggregated MDI market has begun to decline.
In mid to late June, the market supply remained stable, downstream demand was off-season, orders were low, and large factories in the north resumed operations, but the support for the market was limited. Without obvious positive guidance, the price of aggregated MDI continued to decline.
On the supply side, Shanghai Huntsman will restart production of 350000 tons in June. BASF’s 250000 ton plant in Shanghai will restart in June. Wanhua Fujian plant started shutdown maintenance on June 5th, with a duration of about 45 days. Large factories in the north will start reducing production in mid June.
On the cost side, the raw material pure benzene: In June, the pure benzene market fluctuated greatly with the trend of crude oil, and the price at the end of the month increased compared to the beginning of the month. On June 13th, tensions escalated in the Middle East, with oil prices reaching a two month high and pure benzene catching up significantly. On that day, the price of pure benzene rose by around 250-350 yuan/ton. On June 23rd, crude oil prices plummeted and pure benzene began to decline. On June 1st, the average price of pure benzene was 5735 yuan/ton, and on June 30th, the average price was 5984 yuan/ton, with a monthly increase of 4.05%.
On the demand side, the downstream is in a low season of demand, and the high price of aggregated MDI is not smooth. Although there is some support from the supply side, it is greatly affected by the constraints of the demand side.
In the future market forecast, the current MDI market supply side has a moderate willingness to raise prices, while the demand side maintains rigid procurement. Under the supply-demand game, it is expected that the short-term aggregated MDI market will operate in a narrow range.