FocusTDI market set for 3 years of tightness

17 January 2008 09:08  [Source: ICIS news]

LONDON (ICIS news)--World toluene di-isocyanate (TDI) markets are expected to be tight for the next three years but will move into oversupply in 2011-2012, said market sources late on Tuesday.

 

Demand has been very healthy in 2006 and 2007 and with world consumption rising at a rate of 3-4%/year, a new worldscale plant is needed every 12-18 months, said a major producer.

 

No new capacity is due onstream until 2009 when Hungarian producer Borsodchem will start up an additional 160,000 tonne/year plant at Kazincbarcika, in June or July. This extra volume would supply new markets, said a company source.

 

Borsodchem is also improving its TDI technology and expects to make an announcement in the coming months about new developments.

 

Bayer’s new plant in Caojing, China, is also due to start operations in early 2010 - this facility will mainly feed the fast-growing markets in Asia, where consumption is said to be rising at a minimum of 8% per year.

 

There is strong demand for TDI in Eastern Europe, the Middle East and Africa with growth at around at 5-6% per year, driven by improving living standards.

 

BASF and Dow Chemical are still discussing site options for their joint venture 300,000 tonne/year TDI plant in Europe. Feasibility studies are continuing with start-up still slated for 2011.

 

The main outlet for TDI is in the manufacture of polyurethane (PU) flexible foams used in upholstery, mattresses and automotive seats. Smaller uses for TDI include polyurethane elastomers and coatings.

 

See Monday's (21 January) ICIS Chemical Business magazine for a full chemical profile of this product

By: Elaine Burridge
+44 20 8652 3214

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