The MDI market in North America was reported to have improved somewhat in October.Supply was still snug,but not as tight as it was in September.One buyer said volume could be found,but any hiccup would lead to significant tightness again.On the buying side,demand was strong and good volumes were reported from most of the PU chain.Strong demand is expected for the rest of Q4,but there will be some seasonality,and the construction market usually slows down for the winter.Imports continue to be delayed.The European MDI market stabilised somewhat in October with better supply availability.Borsodchem was reported to have ramped up production at its Kazinc-barcika plant after its annual turnaround,which started in August.European supply is now better balanced as currently there have been no maintenance turnarounds in the region.Imports are still low,as other regions have had supply shortages over the past few months.The MDI market is also under pressure from high energy costs.Huntsman announced an additional natural gas costs surcharge of €150/ton on its MDI,effective 1 October.The increase in prices is a result of the significant increase in natural gas in Europe.In China,overall supply in October was relatively tight.Most of the major MDI plants were operating at about 75%,slightly lower than in September.Lian-heng's MDI plant in Shanghai was running at a low level,while other major producers in China were operating as normal.In the downstream sectors,the dual control policy is being gradually eased,allowing the major plants in east and south China to increase their operating rates.
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