For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Toluene Diisocyanate Price Index in APAC declined by 10.8% quarter-on-quarter, settling at USD 1,630/MT FOB Qingdao by the end of June 2025. The quarterly trend was driven by a significant 5.7% price drop in April amid soft downstream demand and surplus inventories, followed by a marginal 1.1% dip in May due to cautious procurement and weak project activity in the construction sector.
• However, prices rebounded slightly by 1.4% in June, supported by seasonal restocking, stable automotive-grade polyurethane demand, and modest recovery in export activity despite logistical bottlenecks. Overall, early Q3 2025 reflected a bearish sentiment in early months with a moderate correction toward quarter-end.
• Why did the price of Toluene Diisocyanate change in July 2025 in APAC? In early July 2025, TDI prices are expected to remain firm due to seasonal restocking and moderate rebound in construction activities, supported by improved supply-chain fluidity. Additionally, persistent EV production across Asia sustained automotive-grade PU foam consumption, even as container shortages and freight costs saw partial easing.
• The Toluene Diisocyanate Price Forecast for early Q3 2025 points toward continued stability with slight upside potential, influenced by elevated energy input costs, feedstock tightness due to refinery output shifts, and firm procurement by downstream PU processors, especially in Southeast Asia and India.
• The Toluene Diisocyanate Production Cost Trend remains volatile, shaped by unpredictable crude oil price movements and constrained toluene availability. Although upstream cost pressures eased temporarily after a ceasefire in the Middle East, heightened shipping risks and inland logistics issues across APAC continued to inflate producer margins.
• Toluene Diisocyanate Demand Outlook is broadly stable but segmented. While the automotive industry’s NEV segment drives steady demand for PU interior components, the construction sector reflects mixed trends. Green building initiatives and infrastructure spending support insulation and sealant demand, but project delays and financing constraints moderate overall offtakes.
• China’s export performance remained relatively firm in June 2025, supported by increased shipments to North America and Southeast Asia. Exporters front-loaded cargoes ahead of anticipated tariff shifts, leveraging restored vessel availability and partial easing of congestion at coastal terminals.
• Domestic consumption in regions like Eastern and Southern China remained steady, supported by flexible PU applications in automotive interiors and energy-efficient construction projects. Ongoing urbanization, EV incentives, and infrastructure-led growth in provinces like Guangdong and Jiangsu contributed to resilient local demand despite global trade headwinds.
North America
• Toluene Diisocyanate (TDI) Price Index in North America declined by 6.1% quarter-on-quarter, with FOB Texas quotations falling from USD 2540/MT in early April to USD 2430/MT by the start of July 2025. April and May experienced notable downward momentum due to mounting inventories, soft demand, and trade disruptions under newly implemented tariff regimes. However, June saw a modest rebound, driven by automotive sector demand, steady production, and logistics-driven supply tightening.
• In early July 2025, the Price Index for TDI remained firm at USD 2430/MT FOB Texas. This was supported by consistent activity in the polyurethane sector, especially for automotive applications, while eased geopolitical tensions and a drop in crude oil prices lowered feedstock toluene costs, reducing production pressure.
• According to the Toluene Diisocyanate Price Forecast, prices are likely to remain rangebound through mid-Q3 2025. However, upward risks could emerge if geopolitical instability re-escalates, particularly in the Middle East, or if supply constraints intensify due to tariff regimes or seasonal disruptions.
• The Toluene Diisocyanate Production Cost Trend stayed moderately elevated. Despite the softening of crude oil prices in early July due to a ceasefire agreement, prior spikes in WTI crude during late Q2 had already increased production costs. Additionally, ongoing freight rate volatility, compounded by port congestion and trade rerouting, added to cost pressure.
• The Toluene Diisocyanate Demand Outlook remained stable in Q2 2025. Automotive sector demand was supported by strong vehicle output and growth in electric vehicle manufacturing, while construction sector offtakes were moderated by high mortgage rates, tariff-inflated costs, and a slowdown in new housing projects. However, renovation and infrastructure activity provided limited support to PU material usage.
• Toluene Diisocyanate imports showed marginal fluctuations through Q2 2025. While port congestion and freight limitations constrained some inbound shipments, total container traffic remained resilient. U.S. trade volumes were partially supported by digitalized logistics and advanced inventory planning, ensuring reasonable supply-chain efficiency.
• Asian and European producers of Toluene Diisocyanate maintained moderate operating rates, with exports to North America impacted by shifting trade policies and cost escalations. The removal of de minimis exemptions and the introduction of baseline tariffs under the "Liberation Day" initiative disrupted low-value imports, though bulk chemical trade remained broadly functional.
Europe
• Toluene Diisocyanate (TDI) prices in Europe registered a quarterly decline of approximately 12.5% in Q2 2025, amid persistently weak demand from key downstream sectors and logistical headwinds. FD Hamburg quotations began the quarter at around USD 2243/MT in early April but trended downward by late May, before marginally stabilizing in June and early July. Despite minor recoveries toward the quarter’s end, the overall bearish sentiment and subdued offtakes outweighed any late gains. This was driven by sluggish construction and automotive activity, cautious purchasing patterns, and cost-side volatility, leading to a net price drop across the quarter.
• In early July 2025, TDI prices in Europe remained stable, reflecting balanced demand-supply conditions. Demand from the polyurethane sector held steady, particularly for automotive applications, although broader market pressures persisted due to year-on-year declines in vehicle sales. Feedstock toluene costs eased following a sharp decline in crude oil prices, triggered by a ceasefire between Israel and Iran. This helped soften production costs, although logistical strain continued to influence regional dynamics.
• The Toluene Diisocyanate Price Forecast for early Q3 2025 suggests a cautiously stable-to-bullish trend, contingent on feedstock cost stability, sustained demand from PU end-use sectors, and resolution of lingering logistics challenges such as driver shortages and port inefficiencies.
• Toluene Diisocyanate Production Cost Trends remained mixed throughout Q2. While easing upstream crude prices offered some relief, supply-side costs were elevated due to regulatory changes, toll adjustments in Northern Europe, and congestion at major ports. Compliance-related disruptions under the EU’s Import Control System 2 further strained trade logistics and inflated operational expenses.
• The Toluene Diisocyanate Demand Outlook stayed under pressure, despite some regional stability. In automotive, declining vehicle registrations and weak combustion engine sales constrained PU foam demand. Meanwhile, construction activity showed mixed signals—steady in Eastern Europe and the UK but slow in Germany and France—resulting in overall subdued TDI consumption.
• • European imports and exports of TDI faced continued disruption, as congestion at Antwerp, Bremerhaven, and Hamburg, along with Rhine River transport constraints and inland freight challenges, restricted shipment flows and delayed deliveries. Regulatory toll adjustments further escalated costs, limiting trade efficiency.
• • Demand variation across Europe added complexity. While Germany and France saw sluggish TDI offtakes due to inflationary headwinds and low consumer confidence, Italy and Eastern Europe experienced relatively steady demand from footwear, insulation, and automotive interiors. These regional stabilizers offered modest support against broader market weakness.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American Toluene Diisocyanate (TDI) market displayed a bullish price trend, primarily driven by supply-side constraints and steady downstream demand. The quarter began with stable TDI production and improving business confidence amid a modest expansion in U.S. manufacturing. Although upstream crude oil prices fell initially, easing feedstock Toluene costs, production costs remained influenced by evolving trade policies and geopolitical factors.
In the mid-quarter, the Arctic Blast disrupted production, and port congestion—particularly in New York and New Jersey—hampered logistics. Despite these challenges, TDI prices held firm due to steady demand from the automotive and construction sectors. Automotive sales rebounded slightly, with notable increases in electric vehicle and light truck purchases, supporting PU-based material consumption. Meanwhile, construction demand remained mixed, constrained by high input costs and labor shortages, though overall spending is forecasted to grow by 5.5% in 2025.
Towards the end of the quarter, bullish momentum continued as supply issues persisted and U.S. chemical exports surged, leading to a trade surplus. While rising tariffs and trade uncertainties under the Trump administration posed risks, strong automotive demand and moderate construction activity kept TDI consumption stable, reinforcing the overall bullish price trend across the quarter.
APAC
During the first quarter of 2025, the Toluene Diisocyanate (TDI) market experienced a mixed trend, with fluctuations in both prices and demand across the region. At the beginning of the quarter, TDI prices rose due to stronger cost support from improved feedstock Toluene availability and stable production levels in China. However, the positive price movement was tempered by weak domestic demand, particularly in the automotive and construction sectors. February marked a shift toward a bearish trend as stock availability increased after the Lunar New Year holidays, putting downward pressure on prices. Sluggish demand from key industries, including the automotive and construction sectors, exacerbated the decline. Towards the end of the quarter, the market sentiments remained moderate, with steady demand in Southeast Asia, especially for TDI in Polyurethane (PU) production, but China’s weak property market and declining automotive sales kept the overall market subdued. The combination of stable production, fluctuating feedstock costs, and varied demand across regions contributed to a cautious and mixed overall trend for TDI prices and market conditions during the quarter.
Europe
Like the North American region, the European Toluene Diisocyanate (TDI) market witnessed a bullish trend during Q1 2025, driven by ongoing supply disruptions and steady demand from key end-use sectors. January prices rose due to seasonal weather events like dense fog and snowfall that disrupted European port operations, leading to delivery delays and reduced availability. Despite lower crude oil prices easing feedstock Toluene costs, logistical challenges maintained upward pressure on TDI prices. The automotive sector provided consistent support, with a 13% rise in production and 19% growth in exports helping stabilize demand. February continued this momentum, as geopolitical tensions—such as U.S. sanctions on Iran and a Ukrainian drone strike on Russian infrastructure—disrupted oil supply chains and lifted upstream costs. Strikes at major ports like Rotterdam and Le Havre further strained logistics. Although construction demand remained weak due to inflation and high interest rates, moderate growth in Italy’s construction orders and ongoing automotive activity helped support pricing. By March, bullish sentiment persisted, with supply constraints and elevated feedstock costs outweighing softening demand from both sectors. Overall, the quarter ended with firm pricing, driven more by limited availability and logistical setbacks than strong demand fundamentals.
For the Quarter Ending December 2024
North America
In Q4 2024, the Toluene Diisocyanate (TDI) market saw a 4% price decrease compared to the previous quarter. This decline was mainly due to weak demand for Polyurethane materials in the construction sector and moderate supply chain disruptions. While the automotive sector boosted demand with higher vehicle sales, the construction sector struggled with sluggish growth, high interest rates, and labor/material shortages. The furniture industry also faced reduced demand, affecting the Polyurethane sector.
Feedstock Toluene costs remained moderate, but a decline in crude oil prices in December pressured production costs. Although TDI production remained stable, export rates, especially to Europe and Australia, fell due to weaker global demand and customer hesitation on new projects.
In the U.S., TDI's demand to manufacture PU materials stayed steady in the automotive sector, driven by strong vehicle sales. However, the paints and coatings industry saw restructuring efforts that reduced TDI consumption. As a result, there was a soft demand in construction, reduced export orders, and fluctuating prices led to a 4% decrease in TDI prices for the quarter.
APAC
In the fourth quarter of 2024, the Toluene Diisocyanate (TDI) market saw a 2% price decrease compared to the previous quarter. This drop was due to moderate demand from sectors like construction and automotive, alongside supply chain disruptions caused by typhoons and logistical issues. TDI production rates remained stable, supported by steady feedstock availability, but rising crude oil prices increased production costs. The demand for PU products from the automotive sector stayed strong, driven by growth in new car registrations, particularly in China. However, weaker demand from the construction sector, due to subdued activity and a slowdown in real estate, reduced TDI consumption. China's exports grew slightly, though at a slower pace, hindered by global economic factors and U.S. tariffs. Despite consistent TDI production, rising production costs placed downward pressure on prices. While the paints and coatings market and the recovering construction sector supported some demand, overall market dynamics led to a 2% decrease in TDI prices for the final quarter of 2024.
Europe
In the fourth quarter of 2024, the Toluene Diisocyanate (TDI) market in Europe experienced a 6% decrease in prices compared to the previous quarter. This decline was primarily driven by weak demand in the construction sector, which continued to struggle with economic and political uncertainties, as well as rising inflation. Although the automotive sector saw some demand growth, it wasn’t enough to offset the overall market slowdown. TDI production remained stable, supported by moderate feedstock availability, but production costs rose due to higher crude oil prices and logistical disruptions at key European ports. Exports continued to decline, marking the eighth consecutive month of decreases, while imports saw a slight increase. Despite some resilience in real estate and automotive sales, particularly in major markets like Germany and France, the overall market conditions remained subdued. The combined effect of weak demand in key sectors and ongoing supply chain challenges, including disruptions at ports, contributed to the 6% drop in TDI prices during the quarter.
For the Quarter Ending September 2024
North America
In Q3 2024, the Toluene Diisocyanate price trend oscillated in the North American region, showcasing moderate sentiments in the market. Initially, at the beginning of the quarter, TDI prices decreased amid reduced demand for TDI from PU segment amid sluggish consumption of Polyurethane materials in the construction and manufacturing sectors.
In the middle of the third quarter, TDI production rates were hampered because of the stressed availability of feedstocks in the region. The offtakes were moderate, and market players raised their quotations. Consequently, the second half of the quarter witnessed a 2% price increment compared to the first half, underlining a gradual price uptick.
Towards the end of Q3, improved availability of Crude Oil in the international market and increased refinery operations resulted in firm availability of feedstocks and negatively impacted the TDI production costs. At the same time, the impact of Hurricane Helene resulted in reduced consumption from downstream industries and an increase in domestic stockpiles due to affected supply chain activities. The market players negatively revised their quotations and overall, the TDI prices witnessed a 7% decline in Q3 2024 from the previous quarter. Conclusively, the quarter-ending price for Toluene Diisocyanate (T80) FOB Texas stood at USD 2700/MT.
APAC
In Q3 2024, the Toluene Diisocyanate (TDI) market in the APAC region has been characterized by a fluctuating pricing environment. The quarter has witnessed significant influences from several factors such as increased feedstock Toluene costs due to fluctuating crude oil prices, moderate demand from downstream industries, and improved manufacturing activities. The market's dynamics were further complicated by supply chain disruptions and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. During the mid-quarter, the looming concerns about a recession in the US affected the international crude oil market and refinery operation. It stressed the feedstock Toluene supplies and TDI production rates. TDI prices fluctuated and rose marginally, and the price comparison between the first and second half of the quarter revealed a modest 2% increase, highlighting slight recovery efforts. Towards the end of the quarter, the increased availability of feedstock Toluene supplies, driven by improved refinery operations and Crude Oil availability amid a resumption of Crude Oil supply from Libya in September 2024, negatively impacted the production costs. Simultaneously, offtakes for moderately low from the PU segment during the period. Conclusively, from the previous quarter in 2024, prices fell by 5%, indicating a downward trend, and Toluene Diisocyanate (T80) FOB Osaka prices settled at USD 1850/MT at the end of quarter 3 of 2024.
Europe
During the third quarter of 2024, the European Toluene Diisocyanate (TDI) market experienced a predominantly negative pricing environment, and the price trend shifted its movement due to imbalanced demand-supply dynamics. Throughout the quarter, the sluggish demand from the polyurethane sector, particularly within construction, exerted downward pressure on prices. The Eurozone's construction sector continued its downturn, significantly impacting TDI consumption. Additionally, the manufacturing sector faced challenges, with the Eurozone Manufacturing PMI indicating declining new orders and rising costs, further dampening demand. Supply-side dynamics also played a role, as supply availability improved post-summer holidays, yet demand failed to match this increase, exacerbating inventory levels. From the mid-quarter, the demand-supply imbalances and external economic pressures caused a marginal incline in TDI prices. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Consequently, the first and second half of the quarter saw a 1% price comparison difference, indicative of persistent pricing challenges. The quarter concluded with a Toluene Diisocyanate (T80) FD Hamburg price at USD 2470/MT in Germany, after an overall 5% drop from the last quarter's prices.
Frequently Asked Questions (FAQs):
1. What is the current price of Toluene Diisocyanate in APAC?
By the end of Q2 2025, Toluene Diisocyanate prices in China stood at approximately USD 1630/MT FOB Qingdao.
2. What is the current price of Toluene Diisocyanate in North America?
By the end of Q2 2025, Toluene Diisocyanate prices in the USA stood at approximately USD 2430/MT FOB Texas.
3. What is the current price of Toluene Diisocyanate in Europe?
By the end of Q2 2025, Toluene Diisocyanate prices in Germany stood at approximately USD 1880/MT FD Hamburg.
4. Why did Toluene Diisocyanate prices change in July 2025?
o Asia-Pacific (APAC): Prices likely edged up in early Q3 2025, supported by seasonal restocking, steady EV-linked polyurethane demand, and improved exports, despite lingering logistics and upstream cost volatility.
o North America: Prices likely stabilized as automotive demand held firm and construction activity stayed mixed. Softer feedstock costs offset tariff-related trade pressures.
o Europe: Prices likely steadied slightly after a sharp Q2 drop, with improved inventories and restocking offsetting weak demand from construction and automotive sectors amid ongoing logistical challenges.
