Updated to mid-November 2009
Asian market review by Chow Bee Lin, ICIS pricing
Average weekly prices of toluene di-isocyanate (TDI) in China rose by about 10% from $2,900-3,050/tonne CFR (cost and freight) China in mid-August to $3,250-3,300/tonne CFR China in mid-November.
Prices in southeast Asia (SE Asia) rose by about 19% on average from $2,800-2,900/tonne CFR SE Asia to $3,200-3,250/tonne CFR in the same period.
Tight supply due to production curbs in Japan and South Korea, and planned plant shutdowns in China were the main price drivers.
European market review by Heidi Finch, ICIS pricing
Buoyant demand in the bedding and furniture sectors and market tightness meant that there was a general upward trend for European TDI contracts between August and November 2009.
In August, there was untraditionally some price increases on TDI contracts during the summer holiday period, driven by tight supply resulting from maintenance and production issues, along with good domestic and export activity to the Middle East and Africa. Due to the mix of bi-monthly and monthly contracts, prices were split between rollovers and increases of €20/tonne, taking August prices to €1,850-1,950/tonne (free delivered) NWE (northwest Europe).
In September, October and November, TDI prices rose significantly by €250-300/tonne, due to buoyant offtake in the bedding and furniture sectors, particularly in central and Eastern Europe, and market tightness. This was attributed to a series of maintenance and production difficulties over recent months, namely Bayer and Perstorp’s force majeure declarations on TDI supplies in July and September respectively.
US market review by Leela Landress, ICIS pricing
Amid higher feedstock prices and very tight supply, TDI transaction prices in the US rose by 12% in the three months to mid-November. TDI bulk delivered transaction prices were higher at 143-160 cents/lb.
TDI export spot prices, which represent trading levels in Latin America, increased to 139-144 cents/lb, as the presence of imports from Asia disappeared and supply tightened in the region.
In reaction to eroded margins due to higher feedstocks, producers pushed through 15-18 cents price hikes during August, September and October.
Supply was tight amid planned and unplanned shutdowns. Dow Chemical declared force majeure on TDI at its Freeport facility in Texas, while another producer started a planned turnaround during the quarter.
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Toluene diisocyanate
Uses and Outlook
Toluene diisocyanate (TDI) exists as two isomers; 2,4-TDI and 2,6-TDI. The most common form of TDI offered commercially is an 80/20 mixture of the 2,4- and 2,6-isomers but is also available as a 65/35 mixture as well as a pure 2,4-isomer.
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Toluene diisocyanate
Process Technologies
The main commercial route for the manufacture of TDI starts with the nitration of toluene using nitric acid to produce dinitrotoluene followed by catalytic hydrogenation to toluene diamine. The toluene diamine is dissolved in an inert solvent and reacted with phosgene to produce a crude TDI solution.
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