Europe July TDI under downward pressure on lower demand

07 July 2010 23:59  [Source: ICIS news]

LONDON (ICIS news)--European toluene di-isocyanate (TDI) contracts in July were mixed between rollovers and decreases of €20-50/tonne amid signs of lower demand and sufficient-to-good supply, said market players on Wednesday.

“There are not enough polyols to foam - that is the main issue limiting TDI demand [a co-product in foam manufacturing],” said one TDI producer. The source added that its offer was restricted due to plant maintenance, but that this was not having an impact due to lower demand.

TDI consumption in Europe was also being limited by seasonally slower activity in the downstream bedding and furniture sectors in July and August and reduced export potential due to softer sentiment in Asia, the Middle East and Africa, players said.

The slightly lower toluene feedstock costs also helped the TDI price softening in July, noted one customer, but this was not considered by players to be the main driver.

Despite the mixed nature of settlements, players reported prices in July at mainly around €2,150-2,250/tonne ($2,722-2,848/tonne) FD (free delivered) NWE (northwest Europe). This reflected decreases of €20-50/tonne, with any rollovers incorporated within the range.

A few players contested prices as low as €2,150/tonne FD, but they were confirmed as representative of larger-volume accounts by some sellers and buyers.

($1 = €0.79)

To discuss issues facing the chemical industry go to ICIS connect

By: Heidi Finch
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly