Europe Aug MDI, TDI settle at rollover to €50/t hike

20 August 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--Assessed contract prices for Europe August isocyanates saw a rollover for both pure methyl di-p-phenylene isocyanate (MDI) and toluene di-isocyanate (TDI), while crude MDI saw average increases of €25-50/tonne ($37-74/tonne), sources said on Wednesday.

 

It was thought that pure MDI and TDI saw rollovers due to balanced market fundamentals and subdued market activity in light of the summer vacation period.

 

Producers said that increases in September were likely to be more successful as market participants would have returned to the market and scheduled shutdowns taking place could cause tightness within the market.

 

Therefore, the assessed range for pure MDI remained at €1,955-2,050/tonne FD (free delivered) NWE (northwest Europe), while the range for TDI was stable at €2,855-3,055/tonne FD NWE, according to global chemical intelligence service ICIS pricing.

 

The assessed ICIS range for crude MDI was increased by €25/tonne on each end, bringing it to €1,925-2,000/tonne FD NWE.

 

It was thought that increases in the crude MDI market had been successful due to the higher August benzene settlement of €900/tonne FOB NWE and healthy seasonal demand from the construction sector.

 

Producers said they would target increases in September, with one targeting an average €100/tonne price hike on its isocyanates.

 

One buyer, however, speculated as to whether September would yield increases for producers, especially when taking into account the downturn in crude oil prices. It believed that feedstocks, such as benzene, would soon follow the downtrend and that the market was on the brink of a change in price direction.

 

A producer countered this, saying that nobody could predict the direction of feedstock costs in the current climate, as movements were so volatile.

 

($1 = €0.68)

 

For more on MDI and TDI please visit ICIS chemical intelligence

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By: Sarah Trinder
+44 20 8652 3214

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