MDI
Crude methyl di-p-phenylene isocyanate (MDI) prices in the US were assessed at $1.33-1.48/lb DEL in bulk in early May 2013, up from $1.30-1.45/lb DEL in bulk in early February 2013.
MDI prices in the US have gradually increased from $1.22-1.37/lb DEL in bulk in early November 2012 and from $1.07-1.22/lb DEL in January 2012, driven by the cost of feedstock benzene.
The January 2013 benzene contract settled at a record high of $5.16/gal, providing support for MDI price direction. Although benzene prices softened to $4.47/gal for May, the contract price was still higher from $4.21/gal in May 2012 and $3.70/gal in January 2012.
Sources said that MDI demand in the US has softened in March and April after healthy activity in January and February. Major consuming applications are automotive, lamination, construction, and spray polyurethane foam (SPF).
MDI supply is sufficient to meet requirements in the second quarter of 2013, according to sources. Market participants said that MDI availability was adequate even during the now-completed nine-week planned maintenance at the Bayer MaterialScience complex in Baytown, Texas.
Updated to mid-May 2013
TDI
Toluene di-isocyanate (TDI) prices in the US were assessed at $1.56-1.71/lb DEL in bulk in early May 2013, up from $1.50-1.65/lb DEL in bulk in early February 2013,
TDI prices stood at $1.42-1.57/lb DEL in bulk in early August 2012.
TDI supply is in balance with demand in the US. No availability issues were noted in the US during the now-completed nine-week maintenance turnaround at the Bayer MaterialScience complex in Baytown, Texas.
Product shipments in the US have been on schedule. US supply into South America had tightened in early 2012, as a result of the permanent shutdown of Dow’s TDI production plants in Freeport, Texas, and Camacari, Brazil.
TDI supply normalised 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 steady from key demand sectors, mainly mattresses, bedding and furniture, and automotive, generally in line with the gradually recovering US economy. However, the robust 10% growth in automotive in 2012 has been projected down to about 3% for 2013.
Updated to mid-May 2013