Europe Oct TDI CP firms on margin recovery, recent output constraints

09 October 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--European toluene di-isocyanate (TDI) contract prices have moved up in October, market players said on Wednesday.

Recent output constraints for one main supplier, and a firm producer stance for margin recovery reasons, have overshadowed flat domestic demand and feedstock cost relief, sources added.

Price increases of €50-70/tonne were largely heard in October, although in terms of absolute numbers quoted, price rises of €50/tonne were most representative.

European TDI contract prices in October were assessed at €2,100-2,150/tonne ($2,838-2,905/tonne) FD (free delivered) NWE (northwest Europe), according to ICIS. This represents an increase of €50/tonne from September.

Larger price hikes of €80-100/tonne were heard from some sources, with a few sellers maintaining that their average increases were €80/tonne and above.  By contrast, lower rises of €30/tonne were also mentioned from one buyer, but neither of these were widely confirmed.

Numbers above and below the range were also heard, but there was insufficient market confirmation to substantiate this as a general market level.

October TDI contracts were mainly agreed when the market was tight. However, some player suggest that he market is moving more balanced now, following the resolution of BorsodChem’s recent production problems. However, a few players maintain that material is still not readily available.

One of two buyers considered that the supply situation is likely to ease quickly and that prices could move in the opposite direction, provided plant reliability remains good, as underlying demand remains modest.

Views on consumption were mixed depending on source. Sellers maintained that offtake is reasonable. One producer said that while demand is flat in northwest Europe, it saw a better demand from the Mediterranean and strong export activity. Buying sources, however, described consumption as flat to modest in the main downstream bedding , furniture and automotive sectors.  They attribute this to ongoing reduced consumer confidence and spending.

($1=€0.74)


By: Heidi Finch
+44 20 8652 3214



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