MDI
Crude methyl di-p-phenylene isocyanate (MDI) prices in the US were assessed at $1.30-1.45/lb DEL in bulk in early February 2013, firmer from early November.
MDI prices in the US were assessed at $1.22-1.37/lb DEL in bulk in early November of 2012, up from early August.
MDI prices gradually firmed throughout 2012 from $1.07-1.22/lb DEL in January, driven by the rising costs of feedstock benzene.
The January 2013 benzene contract settled at a record high of $5.16/gal, providing support for MDI price direction. During 2012, benzene contracts settled at $4.90/gal in November, at $4.21/gal in May, and at $3.70/gal in January.
The most recent increase assessed for MDI was 8 cents/lb in January, while a fresh price hike announcement was heard at 5 cents/lb for 15 February.
Sources said that MDI demand in the US is healthy from all key consuming sectors, including automotive, lamination and construction. Spray polyurethane foam (SPF) continues to perform particularly well.
MDI supply is in balance with demand, according to participants, even as Bayer began maintenance at its Baytown, Texas, complex in late January.
Updated to mid-February 2013
TDI
Toluene di-isocyanate (TDI) prices in the US were assessed at $1.50-1.65/lb DEL in bulk in early February 2013, stable from early November 2012.
November TDI prices rose from $1.42-1.57/lb DEL in bulk in early August 2012.
Two TDI price increase initiatives were heard for 15 February 2013, one at 5 cents/lb and another at 8 cents/lb, but the outcome of the initiatives is not resolved yet.
TDI supply is in balance with demand in the US. No availability issues have been noted as the Bayer MaterialScience complex in Baytown, Texas, started a maintenance turnaround at the end of January 2013.
Product shipments in the US have been on schedule, although US supply into South America tightened in early 2012, after the permanent shutdown of Dow’s TDI production plants in Freeport, Texas, and Camacari, Brazil.
TDI supply normalized in the second quarter of 2012 in the Americas, as material began to arrive in South America from non-traditional suppliers in other regions.
TDI business is described as healthy from key demand sectors, mainly bedding and furniture, and especially from the automotive industry.
Updated to mid-February 2013