13 July 2010 07:27 [Source: ICIS news]
By Ong Sheau Ling
Spot TDI values in
Southeast Asian prices had also weakened, forcing regional sellers to look a little farther - towards the Middle Eastern and Latin American markets, where cargoes could be sold at up to $2,600-2,700/tonne, market sources said.
“The only way to relieve the supply glut is to find other outlets. Besides,
China TDI were being offered by producers at $2,400-2,500/tonne CFR China Main Port (CMP)/Hong Kong on Tuesday, while selling quotes from local traders were at a record low of $2,380/tonne CFR in south China (including Hong Kong).
“Business has been hard in
TDI sales in
The material is used in the manufacture of polyurethane (PU) foams, which are used in various applications, including furniture and automobiles.
Faced with severe inventory pressure over the past few months, Chinese traders were also trying to re-export their stocks to other regions, they added.
Its TDI imports continued to grow on a monthly basis this year until May, when imports fell a sharp 32% from April, whereas its exports surged 46% over the same period, due to a poor demand and plunging TDI prices, market sources said.
With more material being made available to neighbouring southeast Asia, prices in this region fell 19% from mid March, in line with values in the Chinese market, based on ICIS data.
“The southeast Asian market is losing its attractiveness as well,” said a regional producer, who added that he has been trying to sell product to the Middle East and
Korean producers were trying to compete in the
Meanwhile, more offers were emerging from northeast Asian producers to
US-based suppliers maintained their offers to Latin America at $2,950/tonne CFR, higher than those from
Chinese sellers were eager to offer to the
With additional reporting Vera Huang, Ronald Coifman and Heidi Finch
($1 = €0.79)Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connection
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