Asia-Pacific Isocyanates Market Analysis

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)


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


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.


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;


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.


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;


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


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


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;


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


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


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


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


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


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


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.


Version: Oct. 12, 2020 – Oct. 23, 2020

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Documents

Asia-Pacific Isocyanates Market Analysis