Toluene Diisocyanate (TDI) prices in Europe increased in December 2025 as supply became tighter, while downstream demand stayed steady. Several producers operated with reduced rates, resulting in tighter material availability, although feedstock toluene prices softened on the back of declining crude oil and reformate prices. Winter brought a rise in transportation and energy costs and fewer imports from Asia. Thus, supply options for buyers became limited. Regional trade was stable, yet cautious, as regular shipments continued to be received in Europe from Asia amid fluctuating world trade. Demand was uncertain but solid, bolstered by year-end demand in the flexible foam, automotive, and construction industries. Weak furniture and bedding demand kept block-foam output depressed, but steady TDI usage was supported by robust car sales and expanding electric vehicle (EV) production. Looking ahead, prices are set to climb higher due to improving buying interest, resumption of construction activities post-holiday, and supply being further tightened due to scheduled plant shutdowns, as demand from PU sectors to make foams, insulation, and auto seating continues to expand.
