polymerized diphenyl Methane diisocyanate (aggregated MDI) the import spot price in the Gulf Cooperation Council (GCC) region has been hit by a record high in the four consecutive weeks of rising market shortages.
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In the week before September 21, CFR gcc prices reached $3250/ton, up 18% from August 24.
Local prices have risen by 26% per cent in mid-July, the highest level since August 2011, and prices are expected to continue to rise in the next few weeks.
The spot market in the Middle East is in short supply, and it is now the region’s traditional peak season. It is reported that some local buyers are worried about the price will continue to rise and scramble for supply.
A major producer has reserved a small number of products for customers in the Middle East and sold it at $3300/ton CFR gcc quotes.
More than a week ago, the CFR gcc price remained at a lower $3000-3150/ton.
Another aggregate MDI trader who sells in the Middle East believes there will be no traders offering CFR gcc quotes below $3200/ton this week.
Orders priced to be shipped in November have been heard as high as $3600 CFR GCC.
A market participant in the Middle East said it was willing to pay an CFR gcc price of $3500/ton for any polymerization MDI that could be shipped immediately, but still could not buy it.
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Another local market news that “in the GCC region, because there is no supply to buy goods, now any price can appear,”
Shortages are exacerbated by the fact that some of the key MDI producers in North-east Asia, such as Kam Lake Mitsui and East Cao, have reduced capacity.
China Wanhua Chemical is the world’s largest producer of aggregate MDI, with a total capacity of 3 units of 1.8 million tonnes.
Middle East aggregate MDI prices have grown in sync with the region’s rising tide since the end of August. Suppliers have raised prices as a result of continued supply shortages, with spot prices in South-East Asia and India following a sharp rise in the Chinese market.
The price of imported aggregate MDI from China continued to rise in the week before September 20 due to high domestic prices. During the week, China’s domestic demand has declined slightly after surging high tide.
Some Middle Eastern sellers say the aggregate MDI price in the GCC region should be higher than the current price. It is also known that the GCC market will overtake Asia’s high prices after new news emerges.
“It would be more appropriate to settle down [Asian prices] now,” said another market source in the Middle East market.
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