US TDI prices are poised to rise amid steady demand

05 February 2014 23:19 Source:ICIS News

HOUSTON (ICIS)--US toluene di-isocyanate (TDI) prices are projected to rise, supported by producers’ hike initiatives of 10 cents/lb for 1 January or as contracts allow, amid balanced supply and demand, industry sources said on Wednesday.

Buyers talked of firming TDI prices, with increases heard being implemented closer to the proposed 10 cents/lb, up from previous discussion of smaller hikes at around 4 cents/lb. Because of contract terms, implementation of the increases could be delayed from the intended 1 January date, according to industry participants.

TDI prices before the increases are assessed at $1.52-1.67/lb DEL in bulk.

Demand for polyurethane (PU) products was described as healthy to moderate, depending on the source.

Supply was generally adequate, according to sources. However, some delays were noted because of temporary weather-driven logistics glitches, as transportation of raw materials and finished goods was hampered by an unusually harsh winter.

TDI markets were firmer in South America, stable-to-softer in Europe, and stable in Asia and the Middle East. Markets in Asia slowed because of the Lunar New Year holiday.

US TDI suppliers are Bayer MaterialScience, BASF and Dow Chemical.

By Ron Coifman