12 January 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European toluene di-isocyanate (TDI) contract prices mostly softened in January due to good availability and stifled demand, despite the uptrend in toluene feedstock values, market players said on Wednesday.
Rollovers were also heard for January in a few cases, but they were not seen to reflect the general market trend.
Sellers lamented the underlying need to increase TDI prices, following mounting feedstock cost pressure and price erosion for TDI over several months, but they acknowledged that supply and demand was not favourable enough to support increases in January.
Underlying flexible demand was described as reasonable, but TDI consumption was being capped by limited supply for polyols, the co-product in foam manufacturing. This had resulted in good availability in most cases.
European TDI contract prices in January were assessed between €1,920-1,960/tonne ($2,494-2,545/tonne) FD (free delivered) NWE (northwest ?xml:namespace>
Numbers either side of the range were also heard on a few occasions, but they were not widely confirmed in the market.
Looking ahead, TDI sellers were already focussing on minimum rollovers to increases for February, based on the expectation that demand would pick-up, now that the Christmas/New Year holidays were over.
($1 = €0.77)
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