2021 is an extraordinary year for TPU. The price of raw materials has skyrocketed, driving the price of TPU to rise sharply. At the beginning of March, the price rose to a historical high in the past four years. The demand side faced the entanglement of high-priced raw materials. The rational callback of commodities, TPU opened the way to the downside. Near the middle of the year, as pure MDI, BDO, AA and other raw materials bottomed out, the cost side supported the TPU market to rebound. Next, let us review what happened in the TPU market in the first half of the year:
In the first quarter, under the dual support of cost and demand, the domestic TPU market jumped to a historic high in the past four years in only half a month. Affected repeatedly by the epidemic at the beginning of the year, there are more uncertainties in the market outlook. The downstream considers the start of construction and other issues, stocking carefully, and the market is operating relatively smoothly. As the Spring Festival approaches, the epidemic situation has improved, the terminal centralized stocking node has arrived, and the centralized procurement has caused tight spot on the market, and market prices have rebounded within a narrow range. After the return of the year, the country attaches great importance to environmental protection issues. With the large-scale implementation of the plastic restriction order, the consumption of raw materials BDO and AA has increased, and supplier costs have been under pressure. Take the sheath as an example, it rose from RMB 18,000/ton to RMB 26,500/ton, an increase of 47.22% in the month. Downstream construction started earlier than last year, and new terminal orders were slow to follow up. Most of them were mainly pre-delivery orders. In the face of sudden price increases, downstream parties resisted high prices, transactions were thin, and some work was suspended and production was postponed to reduce losses.
In the second quarter, domestic TPU seemed to be on the slide and all the way down. Near the end of the year, as the raw materials bottomed out and rebounded, TPU also ushered in a rebound opportunity. At the beginning of the second quarter, bulk commodities began to slowly pull back and return to rationality. Raw material prices continued to fall. TPU factories mostly lowered their prices appropriately based on the cost of raw materials. . The follow-up of new terminal orders is slow. Adhering to the traditional mentality of buying up and not buying down, downstream manufacturing companies often maintain a rigid demand strategy for purchasing in the market. Entering mid-June, pure MDI, BDO, and AA stopped falling and rebounded. Under the support of cost, the TPU market opened a road to rebound. The news of price increase also stimulated the stocking behavior of some downstream parts to a certain extent, and the transaction improved for a while.
Post time: Sep-03-2021