What caused the prices of Toluene Diisocyanate to oscillate in Asia
- 07-Apr-2022 5:17 PM
- Journalist: Timothy Greene
The market trend for Toluene Diisocyanate (TDI) was fluttering throughout March, backed by altering demand and supply situations. The prices of TDI were surging in the first half of the month and then suddenly started declining in the other half. The factors causing escalating TDI prices in the first half were improved polyether market and constraint offshore TDI supply, which eventually led to increased export from the domestic market, consequently causing price hike of Toluene Diisocyanate. Then, public health concerns took over the situation and caused transportation and logistics blocks, followed by weakened demand and reduced quotation of dealers, leaving the downstream market to abide by the same.
In the second half of March, the market remained tight, and the industries decided to continue supporting the price hike until the time when the Shanghai factory enhanced its guiding prices and the market quotation carried through the same. However, the downstream market did not correspond, and the demand fainted. Furthermore, due to the sudden outbreak of another covid-19 variant, the logistics and transportation at several places got temporarily ceased, resulting in weaker market trades and domestic demand.
In addition, the flickering upstream Toluene prices influenced the TDI market all through the month. The prices of Toluene were inclining in the first half of March owing to skyrocketing crude oil prices amidst the Russia-Ukraine war, followed by a gradual decline in the second half because the crude oil prices settled down, comparatively. Compared to China, several Asian countries, including India, witnessed a consistent rise in the Toluene Diisocyanate prices throughout the month owing to solid demand from the Polyurethane market since the construction and automotive industries are growing in the country.
According to ChemAnalyst, “The upcoming trend of Chinese TDI market is difficult to predict, though as per the estimations the supply would be on the positive side whereas the downstream demand is more likely to remain weak. Consequently, the prices of Toluene Diisocyanate would decline in the forthcoming weeks.”