Suppliers hold firm as demand uptick aids US TDI hike proposal

06 May 2014 23:46 Source:ICIS News

HOUSTON (ICIS)--The 6 cent/lb price increase announced for US toluene di-isocyanate (TDI) is not considered to be feedstock driven but is gaining some support from the supply/demand balance and by a firm supplier stance, buyers said on Tuesday.

Demand from downstream polyurethane (PU) products sectors, mainly bedding and furniture, is growing moderately, but isocyanates plant maintenances currently taking place or scheduled for the near future are crimping availability, sources said, placing upward pressure on prices.

Details on the TDI plant maintenances were not available.

Energy and transportation costs were additional factors supporting the increase proposals, sources said.

US TDI prices are assessed by ICIS at $1.58-1.73/lb ($3,483-3,814/tonne) DEL (delivered) in bulk.

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

By Ron Coifman