TDI prices are gradually heating up

TDI leading company Shanghai BASF raised the contract price in February to 22,800 yuan per ton, up from 800 yuan per ton in January. At present, the supply of goods in the TDI market is still tight, and prices for negotiation have further increased. Domestic mainstream prices without tax are around 22,400-22,500 yuan/ton.

From the dealer's understanding of the situation, the increase in the opening price of Shanghai BASF, coupled with low stocks of leading companies, the slow supply during the Spring Festival transportation and other reasons, dealers have a stronger atmosphere of bullish outlook.

In addition, the Ministry of Commerce made the latest progress in the anti-dumping incidents of TDI. In March 2012, the Ministry of Commerce initiated an investigation into imported TDI products originating in the EU, and in November 2012, it preliminarily ruled that the EU had dumping behavior and decided to import the EU. TDI products are charged 6.7% to 37.7% margin respectively. Affected by this, in January-November 2012, the number of imported products under investigation in the European Union decreased by 86% compared with the same period in 2011. Judging from the latest progress, relevant personnel of the Ministry of Commerce of the People's Republic of China recently conducted field verification before the final ruling on the TDI anti-dumping case of Yinguang Group.

The industry expects that if the anti-dumping case is finally ruled, it will free up domestic TDI leading companies to create new market space. In addition, TDI's new capacity in 2013 will be less, which will also help stabilize market prices, and it is expected to rise easily. For listed companies, Cangzhou Dahua has an annual production capacity of 150,000 tons of TDI. Except for Cangzhou Dahua, Liaoning Jinhua Polyurethane Co., Ltd., which holds 40% of Fangda Chemical's shares, also has TDI business with annual capacity of 50,000 tons, but TDI revenue. The flexibility of the company's performance is less than that of Cangzhou Dahua.