APLA ’18: Latin American TDI market anticipates further price declines

Zachary Moore

13-Nov-2018

CANCUN, Mexico (ICIS)–Participants in the Latin American toluene di-isocyanate (TDI) market are anticipating some additional price declines before the prices reach a bottom, sources said on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).

The global TDI market has shifted from a period of persistent and severe supply shortages in 2017 to ample availability in the second half of 2018.

BASF has resumed full production at its 300,000 tonnes/year TDI plant in Ludwigshafen, Germany while Wanhua started up a new 300,000 tonnes/year TDI plant in Yantai, China in October.

Length in the market has pushed TDI prices sharply lower in the second half of 2018.

TDI was priced at $4,500/tonne on a cost and freight (CFR) South America basis at the time of last year’s APLA. It has fallen to $2,400-2,650/tonne in the week preceding this year’s APLA.

Demand for TDI in Latin America has been stable in recent weeks, although purchasing volumes have been restricted. Most buyers believe that prices still have some room to come down before reaching a floor.

“Talk in the market suggests that prices may drop below $2,000/tonne before the market stabilises,” a market participant said.

TDI is combined with a polyol to manufacture polyurethane foams.

The APLA annual meeting runs through Tuesday.

10347070EB73E9688628E32C264857E0.jpg

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?