23 August 2013 09:32 [Source: ICB]
European toluene di-isocyanate (TDI) prices have rolled over for August in most instances, although there has been some slight softening in some of the higher price levels in the market, sources said on 14 August.
The rollovers/slight decreases occurred despite an increase in the upstream toluene contract in August, with sources pointing out that low European summer demand levels had kept TDI prices largely stable.
Sources agreed that prices had not fallen below €2,000/tonne ($2,667/tonne) FD (free delivered) W (western) Europe. The range for August now stands at €2,000-2,070/tonne FD W Europe.
Sellers however are now looking to increase prices in September.
"Margins have fallen too sharply and too quickly in July and August," one seller said. "We will try to increase prices by €100/tonne over September and October."
The seller said that demand was improving in the US and especially Asia, which would help to limit the number of imports entering Europe and support price increases.
Demand is expected to improve in September once the holiday period is over.
However, a buyer said that demand levels had been lower than expected in August and it was not yet clear on how September demand levels would look.
Another buyer said prices could go down as suppliers were all offering material and demand was not as strong as it should be as a result of the poor economic climate.
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