18 September 2012 23:51 [Source: ICIS news]
HOUSTON (ICIS)--Prices of toluene di-isocyanate (TDI) and methyl di-p-phenylene isocyanate (MDI) are firming in North America in September on suppliers’ initiatives, sources said on Tuesday.
Price increases for September TDI have been proposed at 8 cents/lb ($176/tonne, €134/tonne) or 10 cents/lb, depending on supplier, while hikes announced for September MDI were at 5 cents/lb or 6 cents/lb, depending on producer. Industry sources said discussions on the increases are continuing.
Market dynamics supporting the hikes differ depending on the product, according to participants.
TDI prices are rising on availability concerns throughout the Americas, with only two producers left after the closure of the Dow plants in Freeport, Texas, and in Camacari, Brazil.
A US producer had an allocation on TDI supply between 15 August and 15 September.
In the case of MDI, the driver to firming prices is the high cost of feedstock benzene, with September contract prices at $4.20/gal, compared with $3.00/gal for December 2011.
Although sources gauge MDI and benzene availability as adequate in the Americas, participants in the US are monitoring tightening availability of benzene in Asia and Europe.
US TDI prices are assessed at $1.42-1.57/lb DEL (delivered) in bulk, and polymeric MDI prices at $1.17-1.32/lb DEL in bulk.
US TDI suppliers are Bayer, BASF and Dow Chemical.
US MDI suppliers are Bayer, BASF, Dow Chemical and Huntsman.
($1 = €0.76)
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