PUWORLD(
PU downstream should have gone into traditional peak season since September, but this year domestic tightened monetary, RMB appreciation, restricted extent of economy recovery and deterioration export market pressurized PU downstream market. In August, MMDI trading value maintained at Rmb 18900/ton while PMDI slipped to Rmb 14750/ton, down 4.5%versus that of July averaging pricing. In September, Yantai Wanhua MMDI pricing pegged at Rmb 206000/ton while PMDI dropped Rmb 500/ton to Rmb 16500/ton. In September sole resin and PU coatings market lifted against that of last month while weakened greatly versus that of same period of last year. 2011Q4 was expected to see a lackluster downstream market.
BDO pricing up, supplies pressurized by unstable operation rate
At the end of August, homemade calcium calbide method BDO pricing rose to Rmb 24000/ton, up 9% versus that of July. Homemade BDO business presented demand-over-supply. In August unsteady operation capacity pushed BDO trading value up. 60% of BDO was for PTMEG and spandex production. Although BDO had rising margin space, PTMEG and spandex market reported squeezed profits. BDO producers reaped great benefits. Downstream demand was still slow. September was spandex, PBT, and GBL peak month. BDO market was likely to boom on another notch.
Real estate industry low operation load add pressure on soda ash& chlor-alkali market
Since the beginning of 2011, housing industry new operation area accumulated remained at low rate of 20-25% and completion area was 10-15%. As doors, windows and glasses were soda ash& chlor-alkali downstream. Slow real estate industry added great pressure on ash& chlor-alkali market. Although at present soda ash productivity recorded high, 2011 Q4-2012 would see an insipid downstream demand.