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)
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