On the evening of December 25, wanhua chemical issued the latest MDI price announcement for January 2020 in China.
Starting from January 2020, wanhua chemical group co., LTD. 's MDI distribution market in China will have a listing price of 13,500 yuan/ton (down 3,000 yuan/ton from December 2019) and a listing price of 14,000 yuan/ton from direct selling market (down 2,000 yuan/ton from December 2019). The listing price of pure MDI is 18,700 yuan/ton (3,300 yuan/ton lower than the price in December 2019).
Since June 2019, MDI prices have shown signs of bottoming out.
The market price of pure MDI increased from 17,000 yuan/ton to 21,700 yuan/ton. Aggregate MDI prices rose from 11,000 yuan/ton to 16,500 yuan/ton. Relevant listing prices, are slowly starting to recover. However, there is still a long way to go from 2018's all-time high. As the leading enterprise with the lowest cost in the industry, wanhua has a good support for future profits.
At present, wanhua's main business covers polyurethane industry cluster such as MDI, TDI and polyether polyol, petrochemical industry cluster such as acrylic acid and ester, epoxy propane, water-based PUD, PA emulsion, TPU, ADI series and other functional chemicals and materials industry cluster.
In many businesses, wanhua polyurethane series products still accounted for the highest proportion of revenue.
Judging from its development in the past 10 years, wanhua chemical's revenue and net profit have increased significantly since 2011.
Especially in 2013, wanhua chemical entered the upstream petrochemical field and achieved a fruitful result, realizing the expansion of the industrial chain from the downstream to the upstream. The revenue of 2015 underwent significant structural adjustment, and then continued to show relatively large growth from 2016. In particular, in 2017, the new materials business began to contribute significantly to profits, and the high gross margin helped it to pass through the 2017-2018 economic adjustment period.
Wanhua chemical is a typical example of "refining and chemical integration" of China's local state-owned petrochemical enterprises. With technology innovation as the core and capital operation as the auxiliary means, it carries out the development strategy of integration, refinement and low cost in the field of new chemical materials with high technology and high added value.
As for the future development trend, wanhua will gradually expand its advantages in the field of new materials.
