Wanhua Chemical Pure MDI April listing price cut aggregate MDI flat

recently, Wanhua Chemical Group Co., Ltdissued a price announcement for China in April 2020, starting in April 2020, the company's China region polymer MDI distribution market listing price of 13500 yuan / ton (no change compared to March), the direct market listing price of 14,000 yuan / ton (compared to March no change);According to Sino-Thai Securities analysis, the pure MDI listing price downwards, or related to multiple factorsChina's pure MDI is mainly used in thermoplastic elastomers, sole softo softos, spandex, PU slurry field, terminal application sofher and clothing shoes and hats productionSpandex, China's spandex production capacity is mainly distributed in Zhejiang, Jiangsu, Shandong and other places, the early impact of the epidemic traffic control, inventory is at a high level, and the downstream spinning industry for personnel-intensive industries, the resumption of work is relatively slow, superposition terminal spinning orders affected by overseas outbreaks, spandex inventory is still in the slow de-chemical stage, overall demand in generalThermoplastic elastomers and sole ofthe original liquid demand are related to the shoe industry, similar to spandex logic, downstream small and medium-sized enterprises to resume work difficulties, and overseas outbreaks hit the terminal demand, the industry start-up rate has always remained lowOn the supply side, the ratio of pure MDI to polymerized MDI is roughly between 4:6 and 3:7, as most manufacturers, including Wanhua Chemical, use co-production processesPure MDI not only has a short shelf life, but also the demand digestion speed is not as fast as the polymer MDI, the accumulation of inventory in the early stage is more obvious, resulting in increased shipping pressureAs of March 27, the pure MDI market price of 14650 yuan / ton, down 5.5% from the beginning of the month, the company this time lowered the April pure MDI listing price, so that the listing price closer to the actual level of market transactions, so as to better reflect the market supply and demandthe global epidemic has accelerated, the aggregateMDI market is more affectedAccording to the export dependence of each end-manufacturing industry, it can be roughly estimated that the export volume of pure MDI as a product in 2019 is about 97,000 tons, the export volume of aggregateMDI as a product is about 329,000 tons, and last year the direct export volume of pure MDI and aggregate MDI was 111,000 tons and 629,000 tons, respectivelyIn the face of the spread of overseas outbreaks and countries increasingly stringent measures to close the amount, aggregate MDI external needs received a greater impactReflecting on the market price, as of March 27, the aggregate MDI market price fell 7.3% to 11,400 yuan/tonne in March, a larger decline than pure MDIThis Wanhua Chemical in April polymer MDI listing price flat, continuing the March list prices of manufacturers flat or slightly increased strategyLooking ahead to the future, the Huntsmay plant in mid-April or so has a routine maintenance plan, most of the remaining enterprises have been negative production reduction, supply-side price support is strong, short-term MDI prices or mainly to small fluctuations, and long-term with the supply pattern improved and demand gradually recovered, MDI price center is expected to return to historical averagein addition, Wanhua Fujian MDI Industrial Park officially started construction, "Wanhua speed" is remarkableWanhua announced on March 2 nding the plan to jointly invest in the establishment of Wanhua Fujian with Fujian Petrochemical, the first phase of the proposed investment in jiangyin Port City Economic Zone West District to invest in new annual output of 400,000 tons of MDI, an annual output of 400,000 tons of PVC, TDI expansion, large-scale gasification and other projects, the second phase of the East District plans to invest in the construction of chemical and downstream and other fine chemical projects March 24, the company's Fujian MDI Industrial Park has entered a substantial construction phase, less than a month from the announcement date, reflecting the company's efficiency and determination In the future, with mDI prices bottoming out rebound, as well as the company's early 800,000 tons / year technical reform and 400,000 tons / year Fujian project steady production, MDI business is expected to usher in a rise in volume prices