Toluene Diisocyanate expected to rise due to increased feedstock prices

Indian economy is likely to get affected by the ongoing conflict between Russia and Ukraine. It has been estimated that the continuing situation would cause inflation in the Indian market, owing to the surge in crude oil prices and enhanced freight charges. Consequently, giving rise to the price value of many commercial commodities including Toluene diisocyanate.

Indian market witnessed an upsurge of 2.24% on the week-on-week prices of toluene diisocyanate during the week concluding with 4^th March. The prices were assessed to be at INR 236060/MT Ex-Mumbai. The prime factors contributing towards this price hike were enhanced demand from the downstream industry and the increased upstream costs due to the amplified prices of feedstocks. The downstream demand for toluene diisocyanate was accelerating to form polyurethane, widely used in furniture, infrastructure, and the automotive industry.

Following last week’s trend, the prices of toluene diisocyanate are expected to surge in the upcoming weeks, owing to the augmented price values of its feedstock. Nitric Acid and Toluene are the major feedstocks of Toluene Diisocyanate and the prices of both are soaring continuously. Toluene prices are skyrocketing due to the severe increment in the price value of crude oil caused by the war tension between Russia and Ukraine. The prices of Nitric Acid are fuelling due to the robust demand from the fertilizer industry, to correspond with the food demand. Furthermore, there is a firm demand for Nitric Acid in the downstream industries to form Toluene Diisocyanate and Adipic acid. In addition, Nitric Acid is also required in pigments and dyes related industries. Altogether, higher demand for both Toluene and Nitric acid is expected to increase the price value of these feedstocks. Consequently, being the major feedstocks, both are likely to contribute towards the price hike of Toluene Diisocyanate.