Views: 8 Author: Site Editor Publish Time: 2023-04-04 Origin: Site
According to the latest data released by China Customs, from January to February 2023, China's cumulative exports of polymeric MDI amounted to 207,700 tons, up 46.9% year-on-year.
Strong growth in export volume to Europe/Middle East countries
By country, from January to February, the U.S. remained the largest export destination for China's polymeric MDI (by export volume), with 47,338 tons of polymeric MDI exported to the U.S., up 21.5% year-on-year, and China's polymeric MDI exports to the U.S. accounted for 13.4% of total exports. It is worth mentioning that during the same period, China's exports of polymeric MDI to the Netherlands, Turkey and the Russian Federation grew more strongly year-on-year. China's exports of polymeric MDI to the Netherlands increased by 101% year-on-year, exports to Turkey increased by 329% year-on-year, and exports to the Russian Federation increased by 283% year-on-year.
Some MDI plant capacity in Europe is overhauled/shut down or reduced, so in recent months, local manufacturers have reduced supply to the European market. The main reason for the reduction, one is that European energy prices are still high: according to the companies' financial reports, European energy prices have eased recently, but natural gas and utility costs are still seven to ten times higher than in North America, a disadvantage that will be difficult to reverse in the next few years, and the decline in energy prices has more to do with the warm winter and industrial demand destruction in Europe. The second is the trend weakness in the European demand market from last year, as shown by high inflation. Although the manufacturers responded that the negative reduction is to re-balance the supply and demand in the European market, however, there is a situation that the MDI from European manufacturers, in addition to supplying the local European market, will also supply to the Middle East market. The Middle East demand market has been firmer in recent months.
Therefore, despite the current European demand is relatively weak, however, the local market spot price is still stable at 2200-2300 euros / ton, and according to the latest European market sources, in April, this price is expected to stabilize at 2150-2350 euros / ton range of stable operation.
For the Middle East market, the current mainstream market price remains at $1900-2000/ton. Due to the recent delay in the delivery of an MDI manufacturer in the Middle East, and part of the industry due to the Ramadan holiday and stocking, the actual local market price of up to 2200 U.S. dollars / ton.
