China MMDI - minimal sell pressure offsets weak buy sentiment

03 July 2014 04:39 Source:ICIS News

SINGAPORE (ICIS)--July shipments of monomeric methyl di-p-phenylene isocyanate (MMDI) spot imports to China were negotiated at $2,530-2,600/tonne China, largely stable from end June, market sources said on Thursday.

The downward pressure on Chinese domestic prices in eastern China kept buying ideas for spot imports at $2,500/tonne CFR (cost & freight) China and below, market participants said.

However, it was uncertain whether such bids would gain traction in July negotiations, with two suppliers indicating no selling interest at these lower prices due to minimal stock pressure.

It was possible for buyers in southern China to purchase spot imports at higher prices of $2,550-2,580/tonne CFR China in view of the higher domestic prices in that region, market participants said.

Domestic prices were indicated slightly lower at yuan (CNY) 19,500-20,000/tonne ($3,140-3,221/tonne) DEL (delivered) eastern China in the week ended 2 July, compared to CNY 19,600-20,100/tonne DEL eastern China in the week ended 25 June, according to ICIS data.

Soft domestic prices were attributed to lacklustre buying activity amid weak downstream orders, according to market sources.

A key local producer’s month-on-month rollover of its list price in July provided some measure of support to the domestic market, they added.

($1 = CNY6.21)

By Pui Wing Ho