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When will the PO price rebound?

When will the PO price rebound?

2021年12月25日
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PU Daily, Shanghai In November the domestic PO price declined significantly On November 1, Zhonghai Fine Chemical shut itsplant: Jishen Chemical Industry s third line was restarted Wanhua raised its operating rate to 100% Dongying Huatai ChemicalJiangsu Fuqiang New Matenal and Hongbaoli's plants remained shut In the first week, the PO prce held steady, with buyerscompleting replenishment of inventories at low price. Polyether polyols manufacturers received fewer and fewer new orders. Asmanufacturers felt growing inventory pressure, the upward momentum for PO price lost steam. Later, Dongying Huatai Chemicalraised its production load to 70% on November 5. On November 10 Hongbaoli restarted its unit, but it ran at an extremely lowproduction load Most manufacturers in Shandong lowered their production loads due to extreme weather, resulting in an overalloperating rate of around 70% This, coupled with the arrival of imported goods from Sumitomo Chemical, led to increase in thesupply On the other hand, downstream markets remained weak and buyers took a wait-and-see attitude. thus the PO price set ona downward trajectory, though the manufacturers attempted to keep their quotes steady at RMB 16100-16.200/ton In the middleof the month, as Dongying Huatai Chemical ratcheted up its production load to 100%and Hongbaoli raised it to 50, the supplycontinued to increase. Whereas demand from buyers was weak. Added to that was the growing inventory pressure at themanufacturers. Thus the PO price further decreased after stablizing for a short penod of time on Monday. One day, it even fell byRMB 1, 100/, the biggest decrease in recent years. As the price dropped to RMB 13./ton, buyers previously taking a waitand-see attude became more active in making purchases, which helped alleviate inventory pressure on PO manufacturers. As aresult, the PO price rebounded, with an average daily price increase of RMB 200/ton. At the end of the month, as the prices of rawmatenals rose while orders from downstream polyether polyols manufacturers were few the price of PO stablized at RMB 14200-4.300/ton

At the beginning of December , most PO manufacturers tred to ease their inventory pressure by lowering production loadsexaample , Jishen Chemical Industry performed maintenanceproduction lines , andChemical and Sinochem QPetrochemical aonducted maintenance Aoperating rate remainedelatively low . Meanwhile , demandsluggish . Buyersectors mainly consumed existing stockpiles as they had stockedfeedstocksthe prices were low and because thelether polyols pnce was prohibitively high . Both PO manufacturers and polyether polyols manufacturershard togoods . Mostly having completed deliveryers previously placed , polyether polyols manufacturers discussed pncebuyers for confirmedan attempt to stimulate demandNovemberafter. onstruction Wanhuaemcas polyether polyols plant using DMC technology , located in Yantai dusta Park , was successfully commissionedspec products .

On December 10 , Po prce began to fall after stablizing at RMB 14 . 200-14 , 300 / ton for 12 consecutive days . Manufacturers inShandong took the lead in lowering their quotes by RMB 300 / ton , but response from buyers was tepid . Thus the price further fellby RMB 500 / ton to stablize at RMB 13400-13 , 500 / ton . There is room for further decline in PO price.

Flexible PU foam market : TDI and slab polyols manufacturers found it hard to sell goods as demands from sponges , automobilesdheswes were weak radersdownstream manufacturers largely completed their replenishmeinventones at the end of November by taking advantage of the low slab polyols pricebearish sentimentsto theirced purchases . Downstream manufacturers mainlyInventorInventory pressure ,slab polyols manufacturerspurchases of feedstocks and furtheries , To alleved production due to dispply ofCovestro ( Shanghalan ) performed maintenance alident occurred at a manufacturer in Gansu . other TDI manufactuincreasedraders followeddemand was low.

Rigid PU foam market : As buyers in bhousehold appliances and spray coating sectors placed smallmediate needs and piprojects had largely been completed , trading in MDI and rigid polyols remained sluggishanufacturers adopted diverse selling strategies , including slowing down sales , stabilizing supply and increasing supply . As theearend , some traders kept selling goods for withdrawal of funds , thus dragging down the prices Because maMDI mans controlled sales , spot goods were rare in the dimarket , enabling traders to stabilize and laOrders for ngid polyols are few.

Thus , it is expected that the PO price will further decline . Attention should be paid to PO inventories and orders received by PO manufacturers.