2MDI and TDI price increases Coating enterprise terminal cost pressure is obvious.

On March 20th Cosmos, the raw materials producer, decided to continue producing MDI, a hard foam ingredient, in Tarragonna, Spain, and its original plan to close the plant by the end of 2017 would be put on hold. It is understood that the main reason for this decision is the significant increase in MDI demand.
also benefited from increased demand, and after 2017, MDI will continue its trend in 2016 and continue to rise. At present, domestic and foreign chemical giants have adjusted prices: Dow Chemical announced that from March 15, 2017 or in accordance with the relevant contract provisions, will increase the following PAPI, ISONATE, ISOBIND series MDI price of $0.1/lb ($220/ton); Announced that since March 2017, the company aggregated MDI listing price of 26000-27000 yuan / ton, pure MDI listing price of 25700 yuan / ton, from February again increased 2000-3000 yuan / ton range.
is thought to be linked to the temporary closure of BASF's 400,000-ton-a-year MDI plant in Chongqing, the world's leading polyurethane producer, from February 28th, and the closure of another world-class MDI production facility in Lishui, South Korea, for several days in mid-March, resulting in a gap in MDI capacity of up to 650,000 tonnes, resulting in tight supply of MDI.
It is well known that due to high barriers and high investment constraints, the MDI industry has long maintained an oligopoly pattern, with only 8 companies (Yantai Wanhua, Bayer, BASF, Hemsmay, Dow, NPU of Japan, Mitsui of Japan, and Mitsui of Jinhu) industries in the world. As a result, any new adjustment or production cut will break the supply-demand balance in the MDI market.
and related analysis said that in 2017 the world's main new production capacity is Dow's 400,000 tons / year production capacity in the Middle East, but the product is mainly launched in the second half of the year, load increase will take time, and may be put into production less than expected. The limited supply of new supply will continue the pattern of tight supply of MDI, which also means that MDI is expected to remain highly profitable in the long term.
and MDI are the main raw
of
coatings and polyurethanes, and TDI has also entered the price uptrend phase since April 2016. And the main reason is similar to japan's Mitsui permanently shut down Kashima 117,000 tons of devices, Takazaki Otsaki plant also stopped at the beginning of 2016, resulting in tight supply downstream of the Asian market, the market rose.
it is understood that after entering 2017, BASF, Hanwh?o, Zhangzhou Dahua and Gansu Yinguang and other domestic and foreign enterprises may have maintenance plans, TDI market supply is still tight. At the end of February, BASF in Shanghai announced that it had raised its latest listing price to 36,000 yuan per ton, and in early March Costro Shanghai raised its TDI offer again. From this point of view, the TDI market price gives a lot of room to rise.
although MDI and TDI are the raw materials for different types of coating products, and the proportion is not as large as
titanium dioxide
, even TDI itself as a coating added solvent is still very toxic. However, because the coating industry is still solvent-based
pass
as the main body, and is the main downstream areas of MDI and TDI properties, so that MDI and TDI prices continue to rise, still let as its "spare tire
downstream
passing enterprises
terminal cost pressure significantly.
as a result, many paint companies have publicly raised the price of coating products in the absence of any obvious signs of recovery in the demand for paint terminals, and the pressure of rising raw material costs has been overdone by many paint companies. And
the price of
increase, but also let dealers can not eat. As a result, some dealers in the profit and profit considerations, followed by increased sales prices of products, others in order to maintain stability, choose to sacrifice profits to maintain sales, but some dealers in order to increase customers and sales, and turn to other enterprises' products.
Therefore, although some paint enterprises issued a price adjustment notice, but in order to channel stability considerations, but also had to resist the pressure, the implementation of product price adjustment policy to extend the implementation of time or back, their own purchase cost upward pressure. But this is not a long-term solution, and if the rise in raw material prices continues, or will change the future pattern of the paint market -
on the one hand, many paint companies will face more and more losses, the industry will likely usher in a large-scale reshuffle. On the other hand, the price increase of TDI and other solvent-based raw materials, while squeezing the price advantage of oil-based coatings, will promote the development of the coating industry to further shift the focus of "oil to water" direction. The key is to see whether paint enterprises can seize the opportunity, timely adjust the positioning, turn disadvantages into advantages, and seek new development.