MDI Suppliers Are In A Dilemma.
Upstream raw materials prices continue to rise, downstream industry demand is low, MDI suppliers and traders in a dilemma, miserable.
The responsible person of a well-known polyurethane production enterprise said that international crude oil prices continued to rise, affecting the domestic MDI upstream costs continued to rise. In the past 2 months, upstream aniline prices rose fiercely.
Due to the adjustment of domestic macro-economic tightening and related import and export policies in the past 08 years, the operating rates of the downstream industries related to pure MDI and aggregated MDI have declined and demand has decreased significantly.
This makes the MDI suppliers and traders in the middle of the two sides in a dilemma, and their profits have shrunk sharply, or even hang upside down.
In addition, suppliers said that the current pure MDI and aggregated MDI rose little.
Yantai Wanhua Bayer is also expanding its MDI capacity plan. When domestic and foreign large supplier expansion plan is completed, it will intensify intervention in the domestic MDI market price.
In the interview, traders reflected that the situation of MDI products was relatively special this year, and the demand for downstream industries was significantly reduced due to the impact of the economic environment.
For pure MDI and aggregated MDI, there is no distinction between this season and the peak season.
The sharp rise in raw material prices has eaten up most of the profit margins of MDI, resulting in a smaller profit margin for MDI suppliers and traders.
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