08 May 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European toluene di-isocyanate (TDI) contract prices have largely been pressured down by €50-60/tonne ($66-79/tonne) in May on the back of soft market conditions, players said on Wednesday.
Falling toluene feedstock costs – particularly the sizeable drop in the toluene contract price in April, which had not yet been factored in, had also added to the bearish sentiment.
European TDI contract prices in May were assessed at €2,150-2,200/tonne FD (free delivered) NWE (northwest Europe), according to ICIS.
Numbers either side of the range were also mentioned, but there was insufficient market confirmation to substantiate them as a general market level.
There were larger price drops of €100/tonne in a few cases but this was not confirmed by others. By contrast, smaller price decreases of €20-30/tonne and rollovers were also mentioned in a few cases, but there was no other market confirmation to substantiate this.
TDI consumption in the main downstream bedding and furniture sectors is muted for economic and seasonal reasons. The shorter working month in May because of a number of public holidays in parts of Europe is also limiting domestic market activity.
Export opportunities to the Middle East and Africa are also not really attractive when compared with Europe because of strong Asian competition.
TDI availability is good, despite recent and ongoing plant turnarounds for two suppliers, because they have been planned and demand is subdued.
($1 = €0.76)
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