US Toluene Diisocyanate (TDI) prices dipped in the first half of January 2026 on weaker demand from major polyurethane consuming sectors and buyers waiting to see how the year would start. The production of automobiles slowed, so demand for seating and interior foams was reduced, but steady support was provided by construction-based applications, including insulation and sealants for use in public-sector and commercial building projects. Furniture and bedding producers bought in a tepid fashion as they continued to recover from slow holiday sales, leaving demand overall on average but tepid. TDI production remained stable in the face of rising energy-related cost pressure, and US exports remained strong on the back of a competitive dollar and robust demand overseas on the supply side. In terms of the outlook, market trends signal a probable price upturn later this quarter because of early-year restocking, an improving auto outlook, especially for EV and hybrid models, and a relatively tight supply situation due to logistics constraints and controlled operations of plants.
