An increase in Toluene Diisocyanate Price Caused by Supply Chain Disruption in the UK

As per the reports, Covestro, BorsodChem, and BASF, none of the three Toluene Diisocyanate facilities were operating in the European region for the past few weeks due to the rationing of input supplies which stressed the domestic inventory levels. Toluene Diisocyanate has been imported from other international markets in Asia and US at higher prices to fulfill domestic demand. Amid soaring energy costs and supply chain disruption due to Liverpool port congestion in the United Kingdom resulted in a weekly rise of 2.6% in Toluene Diisocyanate price quotations in the country. Consequently, United Kingdom’s Toluene Diisocyanate prices settled at USD 4280/MT.

Earlier in October 2022, port congestion at Liverpool and Felixstowe ports due to a seven-day labor strike at Liverpool due to a dispute over wage pay from 11th October 2022 slowed the product delivery. While the demand for the Toluene Diisocyanate product was already low due to no significant improvement in the orders from the foaming and construction sector, the retailers were able to replan their operations amid the strike.

In October, an explosion in the Beixi pipeline and Nord gas stream leaks led to a massive Natural Gas crisis in the European region. Inflation was already on the rise, specifically after the input supply crisis from Russia. It restricted the commencement of factory activities, stressing domestic inventory levels, and downstream producers now rely on Asian imports at higher costs.

While Asian producers in Covestro cut down their operation rates due to the maintenance turnaround, and Toluene Diisocyanate prices escalated in China. Due to this, the import price quotations of Toluene Diisocyanate will likely remain firm from Asian producers too.

As per ChemAnalyst estimation, Toluene Diisocyanate price quotations will likely surge from the producers with an improvement in orders from domestic furnishing mills and strong demand sentiments from the downstream Polyurethane industries. Black Friday sale is near, a pre-Christmas shopping phenomenon in western countries. Consumers eagerly wait for the sale to cut down their spending and have great deals. Due to supply chain disruption during the Pandemic and rising inflation, furniture sales were low in the European region. While the anticipations are that the black Friday furniture sale will start earlier this year.