TDI: Sufficient supply shrinks profit

In the first half of the year, the TDI market was ups and dow.

Production continues to increase

Lin Shengcai, general manager of Yantai Juli Fine Chemical .

As TDI prices plummeted, so did profi.

Industry insiders believe that high output is not only an important reason for the downturn in the first half of the year and shrinking profits, but will also restrict the market in the second half of the ye.

According to statistics, the cumulative output of TDI in the first half of the year was about 374,000 tons, an increase of about 25% over the same period last ye.

"Although the demand for 'Golden Nine Silver Ten' may pick up moderately in the second half of the year, it is expected that the Xinjiang Heshan Juli 150,000-ton/year plant put into operation in the fourth quarter will exacerbate the contradiction between market supply and demand, and the market in the second half of the year is hardly optimist.

Low cost support

Li Hong, manager of the marketing department of Shandong Zhonghai Chemical Group .

From the perspective of toluene supply, the Qingdao refining and chemical plant was restarted in mid-July, the Dushanzi petrochemical plant was shut down for maintenance from early July to the end of August, and the Zhanjiang Dongxing plant was scheduled for maintenance for one month in July, which had little impact on the overall toluene market supp.

In addition, after the Hengli petrochemical plant is put into operation, it will have a significant impact on the sales of gasoline in Shandong's local refini.

Li Hong believes that the tug of war between the supply and demand of toluene in the second half of the year will contin.

Demand continues to be weak

In addition to the sharp increase in the supply side, the continued sluggish demand is also an important reason for the TDI market to lose its former glo.

Lin Shengcai said that from the perspective of TDI's important downstream automobile fields, affected by the macroeconomic downturn, automobile production and sales fell by 17% and 14% year-on-year respective.

"With the official implementation of the new national purchase tax policy on July 1 and the official switch of the National VI Standard in some regions, the consumption momentum of the automobile market may improve in the second half of the ye.

        From the perspective of the refrigerator and freezer industry, after the overdraft in previous years, the growth rate of production and sales has slowed do.

        From the perspective of related products polyether, domestic demand fell by nearly 20% in the first half of the year, but due to the factory's active development of the export market, the overall polyether output remained relatively stab.