China TDI hits new 10-year high on tight supply

12 September 2007 03:52  [Source: ICIS news]

SINGAPORE (ICIS news)--China’s toluene diisocyanates (TDI) prices hit a fresh 10-year high of $5,100/tonne CFR (cost and freight) this week on an acute supply shortage, buyers and suppliers said on Wednesday.

Planned and unplanned plant shutdowns in China have created a severe shortage where the previous 10-year high price was achieved in early August at $4,300/tonne CFR China.

Some sellers, however, said the record high prices represented only a small fraction of transactions in the Chinese spot market, and that most buyers were still paying below this level.

“Most of the end-users in China who use imported TDI have regular suppliers, and the price they paid for September shipment is around $3,700-3,850/tonne,” a regional supplier said.

“End-users who buy TDI in a package including polyols can get TDI at around $3,600/tonne,” a second regional supplier said.

TDI and polyols are feedstocks used in making polyurethane foam for various applications in several market segments, including the furniture and automotive sectors.

The supply shortage has also pushed offers in the Hong Kong spot market to $5,000-5,500/tonne CFR Hong Kong, $400-800/tonne higher from the previous week, traders said.

Key TDI producers in Asia include Japan’s Mitsui Chemicals Polyurethanes, South Korea’s Korea Fine Chemicals, and BASF Urethane Korea.

By: Chow Bee Lin
+65 6780 4359

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