10 July 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European toluene di-isocyanate (TDI) contract prices have fallen in July on subdued demand, plentiful supply and feedstock cost relief, market players said on Wednesday.
Price reductions of €30-50/tonne ($38-64/tonne) were mentioned on average for July TDI business, with larger drops of €50/tonne typically heard at the low end of the range.
TDI contract prices in July were assessed at €2,000-2,090/tonne FD (free delivered) west Europe, which represents a price decrease of €30-50/tonne from June.
Price rollovers were also mentioned by a few players, but this was not seen to reflect the general trend.
Larger price drops of €60-70/tonne for TDI in July were also quoted by a few buyers, but this was not widely confirmed.
Numbers either side of the range were also heard, but there was insufficient market confirmation to substantiate this.
A few players said that the price erosion seen in June was now over, and more modest price decreases - as well as some price stability in a few cases - were more realistic in July. One TDI producer said that firmer energy costs over recent days, exacerbated by the strengthening of the US dollar against the euro, means that the price erosion for TDI needs to come to an end.
TDI supply remains plentiful amid subdued demand, talk of some imports ex-Asia and fewer export opportunities to the Middle East and Africa due to Ramadan.
TDI demand in the downstream bedding and furniture sectors in the first half of July remains fairly similar to June, albeit at a lower level when compared with the same period last year. This is due to low seasonality combined with ongoing economic constraints, which continue to reduce consumer confidence and spending.
($1 = €0.78)
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