US MDI prices up by 5 cents/lb in June

03 July 2007 21:12  [Source: ICIS news]

HOUSTON (ICIS news)--Prices for methyl di-p-phenylene isocyanate (MDI) rose by 5 cents/lb ($110/tonne) in June, market participants said on Tuesday.

Some sources indicated that in certain instances the hike would not take place until July due to competitive situations or to quarterly protection in a few contracts.

US benchmark domestic bulk prices for MDI after the June hike stood at $1.33-1.40/lb, according to global chemical market intelligence service ICIS pricing.

MDI producers said feedstock benzene prices drove the June hike. Benzene contract prices had risen to $4.20/gal in May, and despite some erosion, were still relatively high, at $3.70/gal in July.

Manufacturers assessed MDI availability as snug, which provided additional support to the hike. Participants said that ongoing exports into Asia helped balance US supply and demand.

Consumers, on the other hand, said MDI availability was ample, while demand in the US was negatively affected by the slowdown in housing completions and housing starts.

Buyers added that MDI prices would be driven by feedstock benzene values and would soften once benzene prices dropped.  
By: Ron Coifman
+1 713 525 2653

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