US TDI 10 ct/lb March initiative prompted by higher crude, toluene

14 February 2011 22:41  [Source: ICIS news]

HOUSTON (ICIS)--A substantial portion of the proposed 10 cent/lb ($220/tonne, €163/tonne) price hikes for US toluene di-isocyanate (TDI) for March would likely be implemented on strong support from feedstocks and higher crude oil prices, a market source said on Monday.

A producer added that the TDI initiative was well supported by production costs, and suppliers would be pushing for full implementation. The price increases were announced on firm feedstock toluene costs, high crude oil prices and rising values for other polyurethane products and systems.

As negotiations proceeded, buyers said the March increase would probably settle somewhere under the full nomination. Still, a large part of the initiative, possible in the 5-8 cent/lb range, was expected to go through, buyers said.

The cold weather and disruptions in transportation provided additional support to the increase initiatives for TDI, according to the sources.

US prices of prompt feedstock n-grade toluene on 11 February stood at $3.29-3.31/gal FOB (free on board), compared with US barges of n-grade toluene sold on 6 July 2010 at $2.315/gal FOB.

Demand for TDI from the automotive sector was expected to remain healthy, according to participants, who noted activity from the bedding and furniture segments were moderate.

Meanwhile, February TDI prices were assessed by ICIS stable since mid March 2010 at $1.48-1.65/lb in bulk and $1.57-1.76/lb in drums.

US TDI suppliers include Bayer MaterialScience, BASF and Dow Chemical.

($1 = €0.74)

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By: Ron Coifman
+1 713 525 2653

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