For the Quarter Ending September 2024
North America
In Q3 2024, the Toluene Diisocyanate price trend oscillated in the North American region, showcasing moderate sentiments in the market. Initially, at the beginning of the quarter, TDI prices decreased amid reduced demand for TDI from PU segment amid sluggish consumption of Polyurethane materials in the construction and manufacturing sectors.
In the middle of the third quarter, TDI production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations. Consequently, the second half of the quarter witnessed a 2% price increment compared to the first half, underlining a gradual price uptick.
Towards the end of Q3, improved availability of Crude Oil in the international market and increased refinery operations resulted in firm availability of feedstocks and negatively impacted the TDI production costs. At the same time, the impact of Hurricane Helene resulted in reduced consumption from downstream industries and an increase in domestic stockpiles due to affected supply chain activities. The market players negatively revised their quotations and overall, the TDI prices witnessed a 7% decline in Q3 2024 from the previous quarter. Conclusively, the quarter-ending price for Toluene Diisocyanate (T80) FOB Texas stood at USD 2700/MT.
APAC
In Q3 2024, the Toluene Diisocyanate (TDI) market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased feedstock Toluene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the feedstock Toluene supplies and TDI production rates. TDI prices fluctuated and rose marginally, and the price comparison between the first and second half of the quarter revealed a modest 2% increase, highlighting slight recovery efforts. Towards the end of the quarter, the increased availability of feedstock Toluene supplies, driven by improved refinery operations and Crude Oil availability amid a resumption of Crude Oil supply from Libya in September 2024, negatively impacted the production costs. Simultaneously, offtakes for moderately low from the PU segment during the period. Conclusively, from the previous quarter in 2024, prices fell by 5%, indicating a downward trend, and Toluene Diisocyanate (T80) FOB Osaka prices settled at USD 1850/MT at the end of quarter 3 of 2024.
Europe
During the third quarter of 2024, the European Toluene Diisocyanate (TDI) market experienced a predominantly negative pricing environment, and the price trend shifted its movement due to imbalanced demand-supply dynamics. Throughout the quarter, the sluggish demand from the polyurethane sector, particularly within construction, exerted downward pressure on prices. The Eurozone's construction sector continued its downturn, significantly impacting TDI consumption. Additionally, the manufacturing sector faced challenges, with the Eurozone Manufacturing PMI indicating declining new orders and rising costs, further dampening demand. Supply-side dynamics also played a role, as supply availability improved post-summer holidays, yet demand failed to match this increase, exacerbating inventory levels. From the mid-quarter, the demand-supply imbalances and external economic pressures caused a marginal incline in TDI prices. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Consequently, the first and second half of the quarter saw a 1% price comparison difference, indicative of persistent pricing challenges. The quarter concluded with a Toluene Diisocyanate (T80) FD Hamburg price at USD 2470/MT in Germany, after an overall 5% drop from the last quarter's prices.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Toluene Diisocyanate (TDI) market experienced a shift in product prices. Initially, the price trend was firm, and prices rose due to increased production costs. As per EQT, the energy sector witnessed escalations in costs due to geopolitical tensions and positive economic data. Meanwhile, the market showcased mixed demand for TDI from the Polyurethane segment.
In the mid-quarter, the supply side remained relatively stable, with manufacturers maintaining consistent operating rates; however, the ample availability of stocks in the market due to lower offtakes added strain on pricing dynamics. Consequently, prices started declining amid improvements in feedstock availability and product production rates after the ease of geopolitical tensions in the Middle Eastern region. At the same time, the easing of cost support from feedstock Toluene, influenced by a consistent fall in upstream crude oil prices, further compounded the bearish sentiment.
Conclusively, the quarter-ending price for TDI (T80) DEL Louisiana stood at USD 2670/MT, cementing the overall negative pricing environment. The sentiment towards the end of Q2 2024 was decidedly bearish, driven by sluggish demand, ample supply, and declining feedstock costs, creating a challenging landscape for market participants. Additionally, prices recorded an 11% decrease from the previous quarter in 2024, underscoring the persistent weak demand and over-supplied market conditions. The first half of the quarter saw prices drop by 5% compared to the second half, further highlighting the declining trend.
APAC
The second quarter of 2024 has exhibited a clear downward trajectory for Toluene Diisocyanate (TDI) prices across the Asia-Pacific (APAC) region. The market experienced a significant decline influenced primarily by subdued demand from the Polyurethane segment, notably due to a decrease in automotive and construction activities. This period also saw fluctuations in upstream Crude Oil prices, leading to inconsistent cost support from feedstock Toluene, exacerbating the pricing pressure on TDI. Furthermore, geopolitical tensions and economic uncertainties induced caution among buyers, resulting in lower trading volumes and heightened inventory levels. The collective impact of these factors has fostered a negative pricing sentiment throughout the quarter. The correlation in price changes aligns with macroeconomic indicators, including reduced manufacturing activities and a dip in consumer spending. Compared to the same quarter last year, TDI prices in Japan have plummeted by 12%, underscoring a significant year-over-year decline. From the previous quarter in 2024, prices have further decreased by 3%, indicating a persistent downward trend. When comparing the first half to the second half of the quarter, prices dropped by 4%, reinforcing the continuous negative sentiment. Conclusively, the latest quarter-ending price for Toluene Diisocyanate (T80) FOB Osaka stands at USD 1930/MT. This pronounced decrease reflects an overall negative pricing environment, driven primarily by diminished demand and fluctuating upstream cost dynamics, indicating a challenging period for TDI producers and suppliers in the region.
Europe
In Q2 2024, the price trend of Toluene Diisocyanate (TDI) in Europe fluctuated, with shifting movements towards the end of the quarter. Initially, prices were stable, with a slight increase due to reduced production rates caused by limited feedstock supplies. However, demand from the Polyurethane segment remained weak. Mid-quarter, demand for TDI from this segment stabilized. The housing sector continued to perform poorly, although the rate of decline slowed to its lowest in eight months. Commercial building projects saw a significant and consistent drop from the previous month, while civil engineering faced a deepening decline. The construction sector's challenges were exacerbated by a lack of new projects. The contraction in new orders intensified for the first time in seven months, signaling ongoing deterioration in demand conditions. Cost support from feedstock Toluene remained relatively stable, but fluctuations were insufficient to offset the overall trend of declining demand. By the end of Q2, the TDI market experienced substantial price reductions due to a continued drop in consumption within the Polyurethane sector, particularly influenced by sluggish activity in the construction and automotive industries. Comparing quarter-on-quarter movements for 2024, prices decreased modestly by 5%, reflecting a persistent bearish trend, albeit at a slightly slower pace than the previous quarter. The quarter concluded with TDI prices at USD 2530/MT FD Hamburg in Germany, indicating a negative market sentiment at the end of the period.
For the Quarter Ending March 2024
North America
The Toluene Diisocyanate (TDI) price trend remains strong in the North American market during the first quarter of 2024. At the beginning of the quarter, the demand for TDI was moderately low during the New Year holidays and firm availability of stocks in the market. However, orders increased from the Polyurethane segment after the holidays as the furniture industry saw a surge in sales due to Presidents' Day deals and increased demand for painted furniture and cabinets. Simultaneously, the inquiries surged for energy-efficient products in the refrigeration industries.
During the mid-quarter, feedstock supplies were affected because of the low availability of upstream Crude Oil stocks in the global market due to production cuts by OPEC+ and rising anticipations of further Oil production cuts by OPEC+ after the cease-fire in the Israel-Hamas War. Simultaneously, the energy sector witnessed escalations in energy costs due to geopolitical tensions and positive economic data. The orders for Polyurethane components TDI rose in the Polyurethane segment amid a rise in demand from the construction sector for stocking purposes amid the anticipation of the revival of construction activities in the North American region with the arrival of spring.
Towards the end of the quarter, TDI prices continued to showcase bullish movement in the USA as orders were firm from the buyers due to the steady demand for Polyurethane components in the manufacturing and construction sectors. In the refrigerators and freezers (cold chain) sector, consumers complained of fridges dying young, which caused a surge in demand for TDI for repair and replacement objectives. At the end of the quarter, Toluene Diisocyanate (T80) FOB Texas in the USA witnessed USD 3000/MT.
APAC
In the first quarter of 2024, the Toluene Diisocyanate (TDI) prices remain weak in China when compared with the previous quarter. At the beginning of Q1, prices declined due to sluggish demand from PU foam manufacturers attributed to a slowdown in the furniture market amid the escalation in the cost of raw materials such as timber and plywood. Meanwhile, there were disruptions as Mitsui Chemicals and SKC Polyurethanes Inc., in Omuta, Japan, with a TDI production capacity of 10000 TPM, went under force majeure at the beginning of 2024 for ten days due to natural disasters like earthquake and Tsunami and impacted the product availability in the market. Simultaneously, demand improved for stocking purposes before the Lunar New Year holidays in major isocyanate producers in China. During the mid-quarter, South Korean exporters raised the feedstock Toluene costs due to an escalation in demand amid the increase in stock replenishment activities at manufacturing units after the Seollal festival in the country. At the same time, some of the manufacturing units in China went for maintenance shutdown during the Lunar New Year holidays from 2nd February 2024 till 18th February 2024. As a result, TDI prices escalated amid sluggish trading activities and firm demand from buyers like India due to consistent market offtakes during the wedding season and firm consumption of PU materials from the automotive and manufacturing sectors. However, operating rates and trading activities increased after the reopening of the Chinese market. Towards the quarter's end, the air cargo market witnessed increased demand for the third consecutive month in March, fuelled by the expansion of e-commerce and shipping disruptions in the Red Sea, impacting air freight rates and product supplies in the international market amidst moderate demand from buyers. At the end of the first quarter of 2024, Toluene Diisocyanate (T80) FOB Osaka quotations in Japan settled at USD 2100/MT.
Europe
In the first quarter of 2024, the European Toluene Diisocyanate (TDI) market experienced trends akin to those observed in the North American region. Initially, supply chain delays and extended lead times hindered the availability of supplies within the regional market. However, demand was moderate for Polyurethane (PU) component TDI as orders for PU foam in the manufacturing sector witnessed declines amid an increase in the production costs of wood furniture in the region. It caused a slight reduction in the TDI market prices. During the mid-quarter, the production rates were affected by elevated energy costs and limited access to Toluene feedstock, exacerbated by supply chain disruptions stemming from heightened tensions in the Middle East. The situation was further complicated by a missile attack on an oil tanker off the coast of Yemen, leading to increased shipping traffic along alternative routes. Simultaneously, uncertainties regarding energy security in Europe arose, influenced by a pause in US LNG exports, impacting variable costs across industries. The automotive sector continued to witness heightened demand for lightweight PU materials derived from TDI, attributed to the growing production of electric vehicles. Towards the quarter's conclusion, regional manufacturing units grappled with disruptions to production schedules due to a shortage of skilled labor. It resulted in diminished output rates and escalated operational costs. Additionally, global air cargo demand experienced its third consecutive monthly increase in March, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates. Consequently, TDI prices trended upwards again by the quarter's end, with Toluene Diisocyanate (T80) FD Hamburg in Germany assessed at USD 2600/MT.
For the Quarter Ending December 2023
North America
In the North American region, the Toluene Diisocyanate experienced a bearish price trend during Q4 2023, with prices declining due to low demand and sluggish manufacturing activities in the Polyurethane segment. This price decrease is attributed to depressed consumption rates from end-user industries. Initially, the demand was for Polyurethane materials from the Automotive manufacturers due to a decline in manufacturing activities amid the United Auto Workers (UAW) strike.
At the same time, the cost support declined on feedstock Toluene at the beginning of the quarter amid weak demand and a decline in WTI Crude Oil prices due to stabilization in speculations around the supply chain disruptions in the Middle East amid conflict between Israel and Palestinian Islamist Group. During the mid-quarter, Toluene Diisocyanate inventory levels were adequately available in the market, and demand remained low from the Polyurethane segment more significantly after Black Friday sales and a decline in sales in the retail sector due to the depressed consumption rates from the end-user Automotive and manufacturing sectors.
The price trend remained persistent towards the end of the quarter amid cautious buying activities from buyers. Conclusively, the low demand from the downstream industries, coupled with the introduction of bio-based Polyurethane, negatively impacted the petrochemical-based Polyurethane and Isocyanates market, and prices witnessed a decrease of almost 8% compared to the previous quarter. At the end of the final quarter of 2023, the Toluene Diisocyanate (T80) FOB Texas in the USA hovered at USD 2350/MT.
Asia
In the Asia-Pacific region, the Toluene Diisocyanate market situation was bearish due to low to moderate demand from the downstream industries and a decline in manufacturing sector activities, and prices decreased consistently throughout the final quarter of the year 2023. Initially, the feedstock Toluene prices fell due to a decline in upstream Crude Oil prices amid weakening US and European economies, which reduced the production costs, and production rates remained firm in the region. Meanwhile, at the beginning of the quarter, Mitsui Chemicals in Japan, with a TDI production capacity of 120,000 MTPA, went for maintenance shutdown. During the mid-quarter, the procurement activities were reduced from the regional buyers with the arrival of winter and Polyurethane components, and PU materials consumption rates remained sluggish from the end-user Automotive and manufacturing sectors. Towards the end of Q4, the destocking practices by the regional isocyanates producers and sluggish consumption rates from the buyers further tilted the prices in the negative direction. Meanwhile, BASF, in Yeosu, South Korea, with a TDI production capacity of 13333 TPM, went for maintenance shutdown from 1st December 2023 to 11th December 2023. However, at the end of the last quarter of 2023, feedstock availability was affected amid the rise in supply chain concerns through the Suez Canal after the Red Sea attacks in the Middle East region and Toluene Diisocyanate (T80) FOB Busan in South Korea hovered at USD 1971/MT.
Europe
Like the North American region, the Toluene Diisocyanate market in Europe showcased bearish movement during the fourth quarter of 2023, with prices declining throughout the quarter. The market was primarily affected by low demand from the Polyurethane segment, as well as sluggish manufacturing activities during the peak winter and decreased offtakes from domestic buyers. Initially, adequate availability of supplies and the switching interest of downstream buyers towards bio-based Polyurethane materials negatively impacted the demand from the buyers. During the mid-quarter, TDI supply rates were firm in the regional market as shipping rates were consistent from the European hubs. The Eurozone Manufacturing Purchasing Manager's Index also dropped throughout the quarter, indicating a contraction in the manufacturing sector activities. Towards the end of the quarter, the Wood Furniture market in the European region was negatively impacted due to the bursting of a housing bubble, causing a decline in the demand for wood furniture and a decline for Polyurethane foam from the manufacturing sector. Consequently, the consumption of Polyurethane components diminished, and inventory levels remained firm in the market. Conclusively, the Toluene Diisocyanate witnessed a decrease of almost 26% in the region, and at the end of Q4, 2023, the Toluene Diisocyanate (T80) FD Antwerp quotations in Belgium accessed at USD 2462/MT.
For the Quarter Ending September 2023
North America
The Toluene Diisocyanate showcased bearish movement in North America, and prices fell by almost 17% during the Q3 of 2023 amid low offtakes due to sluggish manufacturing activities in the downstream Polyurethane segment. At the beginning of the quarter, prices decreased marginally amid the availability of previous stocks and moderate demand as the USA's manufacturing Purchasing Manager's Index improved during July 2023. Meanwhile, shipping and freight routes were affected amid the decline in Mississippi and Ohio river water levels and delayed shipping route activities through the Panama Canal. The hike in bank interest rates by the Federal Reserve Bank to cool down the rising inflation resulted in a decline in demand from buyers, causing a slowdown in the economic growth of the region, and product prices declined again during the mid-quarter. A noticeable decrease in TDI prices was observed towards the end of the quarter as previous inventories were adequately available amid no improvement in offtakes from the market. Conclusively, the Toluene Diisocyanate prices in the USA witnessed USD 2560/MT at the end of Q3 of 2023.
Asia
In the Asian region, Toluene Diisocyanate prices showcased mixed sentiments during the 3rd quarter of 2023. At the beginning of the quarter, the increment in the prices was nominal. The demand improved from the international buyers due to arbitrage. Meanwhile, A Wanhua Chemical Group TDI plant in key isocyanate producers in China, with a Toluene Diisocyanate production capacity of 300 KTPA, went for scheduled plant shutdown from 15th August 2023 to 23rd September 2023. Simultaneously, the occurrence of regional storms and typhoons like Doksuri, Saola, and heavy rains stressed the production and supply rates in the region. Meanwhile, demand was low from Polyurethane segment throughout the quarter 3 of 2023. Towards the end of the quarter, the prices oscillated and decreased marginally amid the increase in production costs due to stressed feedstock Toluene supplies amid upstream Crude Oil production cuts by OPEC+. At the end of Q3, 2023, Toluene Diisocyanate prices in South Korea and Japan hovered at USD 2100/MT and 2120/MT, respectively.
Europe
Like the North American region, the Toluene Diisocyanate showcased bearish movement in Europe during the Q3 of 2023 amid low offtakes due to sluggish manufacturing and purchasing activities in the Polyurethane segment during summer holidays in the region. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Consequently, the Eurozone manufacturing Purchasing Manager's Index dropped gradually during the 3rd quarter, indicating contractions in manufacturing sector activities and a decline in procurement activities from downstream Polyurethane buyers. The availability of stocks was firm due to previous cheaper imports from Asia. It resulted in an arbitrage window, and suppliers reduced the quotations in the domestic market during the mid-quarter. Demand was sluggish from the downstream Polyurethane industries due to moderately low orders from the construction sector and electronic appliances manufacturers. Conclusively, the Toluene Diisocyanate price declined by almost 18% during the quarter. At the end of the quarter, Toluene Diisocyanate prices in the Netherlands and Belgium hovered at USD 3130/MT and USD 3090/MT, respectively.
For the Quarter Ending June 2023
North America
The Toluene Diisocyanate prices slumped in the North American region during the Quarter 2 of 2023. The offtakes remained sluggish from the downstream Polyurethane industries due to weak activities in the construction sector during Q2 of 2023. Simultaneously, the demand was low, but due to the rising recession and layoff practices, producers and traders increased restocking practices amid increased labor costs. Meanwhile, increased logistics costs provided cost support during the mid-quarter. However, due to the depressed demand in the international market, the traders started destocking practices towards the end of the quarter, which raised the inventory levels, and suppliers decreased their quotations noticeably in the region. At the same time, the feedstock Toluene prices rose initially due to increased costs support from upstream Crude Oil. But due to the reduction in Crude Oil demand from the mid-quarter amid the temperature rise, the feedstock Toluene prices fell and reduced the production costs of TDI. At the end of Q2 2023, Toluene Diisocyanate prices in the USA witnessed USD 3078/MT.
Asia
Toluene Diisocyanate price trend showcased bearish movement during quarter 2 of 2023. The demand was low from regional and international importers due to the sluggish activities in the Polyurethane sector and firm availability of supplies. Simultaneously, the consumption rates from Polyurethane elastomer and coating producers remained inadequate throughout the quarter due to the inactive construction sector. Meanwhile, the strengthening of the US Dollar and the weakening of the other currencies impacted the product prices in the international markets. Furthermore, trading activities increased in China before the Labour Day holidays, as the market was closed in key isocyanates producer China. Towards the end of the quarter, TDI prices decreased slightly amid intensified buying activities before the Dragon boat festival. The feedstock Toluene prices increased initially after the announcement of oil production cuts by OPEC+. However, the decreased fuel consumption with temperature rise reduced the Crude Oil and fuel demand, which reduced the upstream cost support on feedstock Toluene and production costs of TDI. At the end of Q2, 2023, Toluene Diisocyanate prices in Japan and South Korea witnessed USD 2192/MT and USD 2140/MT, respectively.
Europe
In the European region, the price trend of Toluene Diisocyanate remained steady, and prices were decreased consistently by producers and suppliers as the demand was low from downstream Polyurethane sealants and coatings producers due to sluggish activities in the construction and electronics industries. At the end of the quarter, the decline in prices intensified amid firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. Meanwhile, the feedstock Toluene prices were firm initially and declined from the mid-quarter and reduced the production costs. Simultaneously, the reduction in Natural Gas prices decreased the variable costs during quarter 2 of 2023. At the end of the quarter, the Toluene Diisocyanate prices in the Netherlands and the United Kingdom witnessed USD 4032/MT and USD 4052/MT, respectively.
For the Quarter Ending March 2023
North America
TDI price trend remained firm in the North American region, and prices rose consistently throughout the first quarter of 2023. At the beginning of Q1, an increase in the upstream WTI Crude oil prices raised the cost support amid consistent demand from importers. During the mid-quarter, Supply chain activities improved with the temperature rise. At the same time, increases in Federal Reserve Interest rates throughout the quarter to curb rising inflation made the buyers conscious while making purchases. Consequently, at the end of Q1, prices remained stagnant amid weak offtakes from the downstream Polyurethane industries. At the end of the quarter, Toluene Diisocyanate prices in the USA hovered at USD 3350/MT.
Asia
In Asia, the TDI price trend shifted sentiments during quarter 1 of 2023. During the H1 of the first quarter, the price trend was firm due to limited inventory levels and consistent demand from the downstream sector. The prices rose noticeably during the mid-quarter amid firm orders for PU foam in the manufacturing sector due to increased demand for furniture in the retail sector. At the same time, feedstock Toluene costs rose due to shifting upstream costs amid volatile crude oil prices. However, TDI prices stabilized at the end of the quarter due to declined orders. At the end of Q1, 2023, Toluene Diisocyanate prices in South Korea and China settled at USD 2740/MT and USD 2635/MT, respectively.
Europe
Throughout quarter 1 of 2023, the TDI price trend remained bearish, and quotations consistently decreased by the suppliers amid the surplus availability of supplies. At the same time, the demand was low from downstream Polyurethane industries due to weak orders for PU foam in the construction and automotive sector. In the H1 of the quarter, feedstock Toluene prices rose due to increased upstream Crude oil prices. At the same time, significant decreases in the Dutch TTF natural gas costs reduced the cost support and input prices. At the end of the quarter, the Toluene Diisocyanate prices in Germany and Netherlands witnessed USD 4090/MT and USD 4150/MT, respectively.
For the Quarter Ending December 2022
North America
Throughout quarter 4 of 2022, Toluene Diisocyanate prices fluctuated in the North American region. Initially, the product prices increased due to increased feedstock Toluene and upstream costs amid rising inflation and consistent offtakes from the downstream Polyurethane industries. The orders for the Polyurethane form were firm from the manufacturing sector during H1 of Q4 due to expected consumer demand from the automotive producers and furnishing mills. However, in the mid-quarter, the price trend shifted, and TDI prices decreased on the back of firm inventory levels and a reduction in the upstream costs due to a decline in the WTI Crude oil prices. In the final month of Q4, the product prices trend shifted again, and prices increased on the back of an escalation in the upstream costs. Conclusively at the end of Q4 2022, Toluene Diisocyanate prices in the USA settled at USD 3200/MT.
Asia
At the beginning of quarter 4 of 2022, Toluene diisocyanate prices increased as the producer Covestro in China Shanghai, with a production capacity of 2.9 MTPA, was closed for a week, and inventory levels remained under stress, and supplies were affected to the importers. After the mid-quarter, the prices started declining and decreased till the end of the quarter due to a decline in orders from downstream industries and an increase in domestic inventory levels in China because of disruption in the supply chain amid zero covid controls. At the end of Q4, product prices decreased due to the destocking practices by the exporters. However, the exports were affected due to covid restrictions. At the end of the quarter, Toluene Diisocyanate prices in China settled at 2320/MT.
Europe
Toluene Diisocyanate prices rose throughout the Q4 of 2022 in the European region. At the beginning of Q4, the product prices soared on the back of stressed inventory levels as all three producing facilities had stopped their operations due to the rationing of input supplies from Russia as an explosion at the Beixi pipeline caused the Natural gas crisis. Orders for PU form were firm from the manufacturing sector, but because of the unavailability of inventories, the product was imported from Asian exporters. In the mid-quarter, the facilities started operating moderately amid high inflation, and product prices rose marginally until the end of the quarter due to limited operations and offtakes by downstream industries. At the end of the quarter, Toluene Diisocyanate prices in the Netherlands settled at 4410/MT.
For the Quarter Ending September 2022
North America
A shifting price trend of Toluene Diisocyanate was observed in the USA during quarter 3 of 2022. In the first half of Q3, the product prices decreased like the previous quarter on the back of sufficient inventory levels and a significant shift in feedstock toluene prices, which negatively impacted the production cost of TDI. However, in the final month of Q3, the price movement shifted, and production costs inclined upward amid the increased demand from European importers. Subsequently, post witnessing a decrease of 7.5% in the previous quarter's values, Toluene Diisocyanate prices in the USA settled at USD 3100/MT at the end of Q3, 2022.
Asia
Initially, the prices fell consistently due to an increase in product inventory levels because of cautious buying sentiments from downstream industries and a plunge in feedstock cost. In the mid of the quarter, the production curtailment on the Government's instructions due to heat waves during summer and power outages in countries like Japan and China. However, in the second half of the quarter, the price trend shifted, and product prices started increasing and rose till the end of Q3 on the back of increased import orders from European PU producers. At the end of the quarter, TDI China discussions settled at USD 2860/MT after an average quarterly decrease of almost 4.5%.
Europe
Like the North American market, the price movement of TDI also shifted during the quarter in the European market. In the first half of the quarter, the product prices decreased on the back of improved inventory levels and decreased production costs. Additionally, the high inflation depreciated the Euro values against the US Dollar, more significantly towards the end of the quarter, due to which product prices rose during the final month of Q3 amid low domestic inventory levels. Key producers curtailed their productions amid high energy prices and rationing of input supplies by the exporters. At the same time, the demand was slow from the downstream PU producers during the quarter. After a decrease of almost 7% in the previous quarter's prices, TDI discussions in Germany settled at USD 3870/MT at the end of Q3, 2022.
For the Quarter Ending June 2022
North America
In the North American region, the price of Toluene Diisocyanate decreased continuously throughout the second quarter. During the H1 of quarter, the price declined due to a reduction in demand from domestic and importing countries. However, in the 2nd half of the quarter, a steep decrease in Natural gas prices due to a fire at an LNG liquefaction plant in South Texas reduced the upstream pressure on TDI values as Natural gas was excessively available in the region. The demand for material remained consistent with stable offtakes, and after a quarterly decrement of 4.7%, in June 2022, Toluene Diisocyanate FOB Texas price got settled at USD 3120/MT.
Asia
As the major manufacturer of TDI material in the Asian region, in China, the prices decreased continuously in the 1st half of the quarter amid the lack of demand from Polyurethane manufacturers due to the stagnant purchase activities in the household sector caused by frequent lockdown reduced the purchasing power of people. Exports to importing Asian countries also remained affected due to port congestion. Subsequently, excess stock inventories of materials deaccelerated the price. After the ease of lockdown and reopening of the port, manufacturing and trading activities rose in the region, and values started surging in the 2nd half of Q2. Similarly, prices decreased in other Asian countries, including India. In June, after an average quarterly decrement of 8%, Toluene Diisocyanate FOB Qingdao price settled at USD 2520/MT in China.
Europe
Toluene Di Isocyanate prices remained strong in the European region, and the price trend shifted continuously throughout the quarter. At the beginning of the quarter, values surged sharply as the fallout in energy supply shortages in the region and increased upstream Natural gas prices induced cost pressure on upstream. Then in the mid of the quarter, the prices started declining. Also, material supplies were affected in the European region due to the shortages of containers, and the demand remained stable with steady offtakes of material from the market. After an average quarterly surge of 11% in values, the price of Toluene Diisocyanate FD Hamburg assembled at Euro 3603/MT in June 2022.
For the Quarter Ending with March 2022
North America
In North America, the prices of Toluene Diisocyanate (TDI) declined in the Q1-2022, on the back of sluggish demand and adequate supply. Inventories levels were sufficient to cater to the overall demand, hence the prices of Toluene Diisocyanate fell correspondingly. The demand for Polyurethane was comparatively low from foam-based industries due to lower consumption in construction and automotive industries. In USA, prices of Toluene Diisocyanate at FOB Texas in the month of January were assessed at USD 4430/MT, which decreased to USD 4270/MT in February and marking a noticeable change of 3.61% in the entire period.
Asia Pacific
Asia-Pacific region witnessed an upsurge in the price of Toluene Diisocyanate (TDI) during Q1 of 2022, backed by strong demand and increased upstream costs. The demand for TDI majorly comes from Polyurethane based industries, which were in their growing phase during the considered period, hence they enhanced the consumption of TDI in the Asian domestic market. Besides, the prices of upstream Toluene were also observed rising during the 1st quarter, directly impacted TDI prices. Furthermore, increased crude oil and freight charges owing to prolong conflict between Russia and Ukraine, exacerbated TDI values. Conclusively, prices of Toluene Diisocyanate (T80) in the Indian Market were assessed at USD 3415/MT during March 2022.
Europe
Prices of Toluene Diisocyanate (TDI) soared in the European market during Q1-2022, on account of robust downstream demand. As the consumption of Polyurethane, which is a major downstream product of TDI, increased in construction and automotive industries, so were the offtake of TDI in the domestic market. Furthermore, skyrocketed crude oil prices and increased logistic charges amidst Russia-Ukraine war tensions added to the already augmented price value of TDI. Altogether, firm demand from end-user industries and fuelled crude oil prices were the major factors behind price surge of TDI in European countries. Thus, the observed prices of Toluene Diisocyanate in Germany averaged at USD 3472/MT.
For the Quarter Ending December 2021
North America
Riding on the back of curtailed supplies of toluene feedstocks and TDI on continued hurricane-induced production outages in many refineries and their downstream facilities located in Louisiana led the TDI prices to stay inflated during October and November in North America. The astonishingly high enquiries from the downstream polyurethanes sector worried the manufacturers who struggled to deliver the committed contracts. Additionally, the supply chain woes added to the burden of the manufacturers and the procurers alike during the quarter. Despite the recovering production output and the buildup in the upstream crude oil inventories in the second half of November, the prices for TDI remained firm on high demand from the end-user upholstery, construction and paints & coatings sector leaving no room for buyers to negotiate. The last assessed TDI prices in December stood around USD 4595/MT on FOB basis.
Asia
The impact of logistical issues and port congestion coupled with the limited availability of feedstock in Q4-2021 induced additional cost support to the offered quotations for TDI in the Asian market. The robust spot enquiries in China amid the slump in TDI productions due to the government’s “Dual Control Policy” caused the market players to fret over losing competitiveness. A small respite with the decrease in feedstock prices with the internationally recovering upstream inventories, and underwhelmed demand in the automotive sector was reflected in the form of short-lived stability, however, the general price trend remained buoyed with multiple height gains, reaching USD 2417/MT FOB Qingdao in December. In India, the TDI prices peaked at the highest value during October with a surge in regional demand due to enhanced festive period sales and limited imports from China and Europe. However, the down treading toluene feedstock futures allowed the downstream buyers to stockpile inventories during November and December. The prevailing stock clearance sentiments among the Indian traders encouraged them to offer low contract prices which caused the TDI prices to hover around USD 2912/MT Ex-Mumbai during December.
Europe
The prolonged toluene feedstock shortage and irregular imports created an extreme tightness in the TDI supplies in the European market. The demand fundamentals shot up reaching extremities that could not get satiated by the domestic inventories, thus giving rise to several order cancellations. The relaxation in port mobility and weakened feedstock market towards December brought a small relief in the prices. Yet, the consistent offtakes in the downstream industries maintained upward pressure on the European TDI market. Retracting from record-high levels, the TDI prices in Germany ranged around USD 3310/MT FD Hamburg during December.
For the Quarter Ending September 2021
North America
The prices of Toluene diisocyanate rose effectively during the third quarter of 2021 in North America. Unperturbed demand surge from the downstream sectors coupled with production outages has disrupted the normal TDI market dynamics in the region. BASF, a key producer of TDI announced force majeure in the aftermath of hurricane Ida which caused the complete shutdown of its Geismar, Louisiana plant in the US. As a result, TDI prices have been on the continuous rise for a major part of the year. Demand remained firm from the downstream industries including paints and coating, building and construction, and several others.
Asia Pacific
The overall market of Toluene Diisocyanate witnessed an upward trajectory in the Asia Pacific region in Q3 2021. In India, the prices of TDI showcased a steep rise during the first week of July, bolstered by stable demand dynamics in the country amid crippled supply activities in the international market. CFR Kandla (India) pricing observed an uptrend by escalating from USD 1984/MT to 2181/MT during the quarter. BASF announced a temporary shutdown on its Louisiana based TDI facility due to the disruption caused by Hurricane Ida. Moreover, scarcity of feedstock compelled BASF Shanghai to temporarily turn down its TDI facility in China. All these disturbances were collectively responsible for a significant hike in the price trend of TDI in the country.
Europe
During the second quarter of 2021, the TDI supply outlook remained unchanged from June due to disrupted production and scarcity of raw materials in the European region. Covestro a leading producer was running its European units at reduced prices in order to complete maintenance. BorsodChem was due to start planned maintenance at its MDI unit in Kazincbarcika, Hungary in Q3. In terms of demand, some market players reported that demand was still strong during the quarter, particularly from the downstream construction sector. The pricing of TDI was last assessed at USD 990 per MT FOB Texas in September.
For the Quarter Ending June 2021
North America
The supplies in the North American region improved in comparison to the previous quarter owing to the restoration of the industrial infrastructure in the USA Gulf Coast, after the devastating impact of the polar storm. In second half of the quarter several production issues erupted at major TDI plant marginally hindered the supply fundamentals. Demand observed gradual improvement from the downstream paints and coating, and several other end use segments as the region witnessed seasonal hike in building and construction activities. However, the prices witnessed an uptrend with FOB Texas prices reaching USD 3840 per tonne in June.
Asia Pacific
Overall, the market outlook in Asia Pacific slumped during the second quarter of 2021. Supplies were constrained in the Northeast Asian region as crackers were shut in South Korea Kumho Line 3 and Japan’s Mitsui Chemicals plant due to the scheduled turnarounds in the second quarter. In China, government-imposed consumption tax on several imported heavy aromatics commodities. The tax was followed by the increment in freight rates due to container shortages and difficult trading environment. Offtakes were narrowed as the demand from PU segment witnessed decline due to off season sentiments, however situation eased with revival in construction activities. As a ripple effect the prices at Ex-Work Nanjiang settled at USD 2029 per tonne in June.
Europe
During the second quarter of 2021, supply remained tight in the European region owing to the delay in resumption in BASF Ludwigshafen plant in Germany in the second half of the quarter. However, the influx of the volumes from US enhanced the supply outlook. Demand was on a downward trajectory amidst feeble offtakes from flexible foam industries due to the offseason period. Prices fluctuated in a stable to firm range amidst the balanced supply demand ratio in the second quarter of 2021.
For the Quarter Ending March 2021
North America
TDI supplies remained tight during Q1 of 2021 as various plants reported maintenance outages during the H1 of the quarter. During mid-February, freeze weather conditions disrupted the production line in the US gulf region, which further resulted into surged spot prices of feedstock as well as TDI in the domestic market. Some plants located in Texas and Louisiana were affected by the winter storms. The demand surged for the downstream polyurethanes from the automotive sector which showed signs of rebounding. However, the hiked prices and supply disruptions inclined the offers especially destined to the Asian region.
Asia-Pacific (APAC)
The supplies were balanced in the APAC region, during the quarter, as the addition of new capacities in China inclined the production. However, most suppliers in the region were heard catering to the demand of feedstock Toluene from the western hemisphere for better netbacks in revenue. The demand from the APAC region surged throughout the quarter as the consumption rose amid improving automotive demand. The decline in imports of Toluene Diisocynate amid delayed deliveries from the US and unavailability of transportation freights, surged the CFR prices of Toluene Diisocynate in the Indian market, while maintaining an average of USD 1942/ton in Q1 of 2021.
Europe
During the Q1 of 2020, the supplies were tight in the European region, due to the imposition of lockdown, restricted mobility and economic activity which became restricted leading to the downfall in the regional consumption surged the demand regarding export purposes. The surging spot prices in feedstock Toluene, widen the arbitrage between US and Europe, followed by due to minimal transporting activities its consumption from automotive sector decline which further reduced the demand of TDI in domestic market.
For the Quarter Ending September 2020
North America
Ample stock of TDI in the US market against its slowed consumption from downstream industries continued to put forth downward pressure on its price fundamentals. In line with bearish demand outlook, BASF declared a force measure on TDI plant based in Louisiana. Although the situation relatively improved in comparison to the previous quarter with pickup in demand from bedding and furniture segments, it was not enough to revive the prolonged grim outlook of TDI in the regional market. Furthermore, demand for TDI from the automotive sector showed a substantial recovery but remained way below the pre-pandemic levels.
Asia
After observing steep slump in its values in the previous quarter, Toluene Diisocyanate (TDI) fundamentals in the Asian market gradually improved by Q3 2020 against the backdrop of supply shortages from several western countries due to seasonal plant outages. Although TDI market sentiments in the Southeast Asian countries like India remained bearish as buyers restrained from indulging in new contract deals as they were expecting a further drop in prices. In India, TDI was traded at USD 1839 per MT in September, showcasing a drop by around 3.5 per cent from the previous quarter. To relieve the domestic production, the government of India announced anti-dumping inquest on TDI imports from China in late August. As major economies in Asia are continuously revising their market strategies to combat against the demand volatility, traders showcased optimism over improvement in its offtakes by the next quarter.
Middle East
Supply fundamentals of Toluene Diisocyanate (TDI) remained mixed in the third quarter of 2020. Producers were heard operating at increased rate on pick up in demand from flexible foaming application amidst the resumption in market activities due to relaxations provided in lockdown restrictions. However, several maintenance turnarounds in the second half of the quarter caused a supply shortage in the market, thereby compelling the end use industries to shift to the imported product. Many factories that earlier maintained low inventories were seen restocking ahead of the anticipated rise in seasonal demand.
