2010-01-29 [Source: Pudaily]

PUdaily, Shanghai- According to some local downstream clients, as they have stored enough inventories and are still unclear about March demand, it would be risky to continue purchases regarding February demand will be low and the current quotes have already increased RMB1500/t from last month. Thus they may choose to ride the fence before Spring Festival.

From the sources of suppliers, they will increase inventory by means of low demand and high quotes to clients in February.

However, in the local trading market, controversy among traders is apparent. Some traders agree the future demand from home and abroad, pushed by the recovery of global economy, will keep rising; In addition to the future costs increases from suppliers, most MDI facilities will be shutdown for maintenance in the first half of this year. Whereas some other traders insist March transactions are unlikely to go well in consideration of current hysterical purchases for crude MDI in stead of actual low demand in February, which will be inevitably unable to make clients digest the excessive inventory in February and March.

In the local trading market, PM-200 stocks are sold at RMB15800-15900/t, Shanghai stocks at RMB15700-15800/t. Imports from Japan and Korea are changed hands at RMB15700-15800/t while some traders cling to quotes at RMB16000-16200/t.