A one-week monitoring report of the chemical industry showed that of the 68 chemical products monitored, there were 8 products that rose, accounting for 11.8% of the total. Pure MDI (isocyanate), polymeric MDI, and cryolite topped the list, with pure MDI gaining 12.24% in the week under measures to limit production insured by manufacturers and control market shipments. The number of falling products was 36, accounting for more than 50%. Acetone, acetic acid, and phthalic anhydride were among the top decliners. From the comparison of the number of changes, the chemical market continued to experience a deep consolidation.
The decline was the main reason for the sluggishness of energy, rubber, and even the entire petrochemical market last week. Individual industries, such as MDI, may be able to pull up the market in the short term by controlling shipments because suppliers are in a monopoly position. However, in the medium and long term, it will inevitably be countered by weak demand from end-users. Since the prices of most chemical products are still at a relatively high level, following the decline in international oil prices, it can be regarded as a rational return to a certain extent. It is expected that the trend of weak consolidation in the domestic chemical market will continue in early May and early June.
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